A company increasing its credit terms for customers from 1/10, net 30 to 1/10, net 60 will likely experience:

a. An increase in cash on hand.
b. An increase in the average collection period.
c. Higher net income.
d. A higher level of uncollectible accounts.

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)?