Coop IncOwns 40% of Chicken Inc

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 that 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) ?

A) $2,000 unfavorable.
B) $2,000 favorable.
C) $10,000 unfavorable.
D) $10,000 favorable.
E) None of the choices are correct.