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Abigail Corporation receives a $20,000 dividend from Luke Corporation, a domestic corporation owned 50 percent by Abigail Corporation.

Abigail Corporation receives a $20,000 dividend from Luke Corporation, a domestic

corporation owned 50 percent by Abigail Corporation. What is the book tax difference associated

with the dividends received deduction only?

A. $14,000 favorable

B. $16,000 favorable

C. $20,000 favorable

D. $20,000 unfavorable

E. None of the above

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