The strong incentive of sellers to deter the entry of new sellers is a major reason that: most markets are imperfectly competitive. deterrence strategies are rarely used. average costs are higher than necessary in the long run. product differentiation is rare.

Coop inc. owns 40% of chicken inc., both coop and chicken are corporations. chicken pays coop a dividend of $10,000 in the current year. chicken also reports financial accounting earnings of $20,000 for that year. assume coop follows the general rule of accounting for investment in chicken. what is the amount and nature of the book-tax difference to coop associated with the dividend distribution (ignoring the dividends received deduction)?