Suppose the government decreases taxes. Use the aggregate demand and aggregate supply model to show the effects of the decrease in taxes on the economy. 1.) Use the line drawing tool to show the effect of the decrease in taxes on the AD or AS curve. Properly label this line. 2.) Use the point drawing tool to show the new short-run equilibrium. Label this point 'B'.

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)?