Final answer:
A dividend-received deduction results in a positive book-tax difference because it reduces taxable income for tax reporting but not for financial reporting.
Step-by-step explanation:
Any dividend-received deduction creates a positive book-tax difference. The correct answer to the student's question is option (a) positive. Book-tax differences arise when the financial accounting (book) treatment of a transaction differs from its treatment for tax reporting purposes. When a corporation receives a dividend from another taxable domestic corporation, it is generally entitled to a dividend-received deduction for tax purposes to prevent triple taxation.
This deduction reduces the corporation's taxable income, whereas for financial reporting purposes, the full amount of the dividend is generally reported as income. As a result, the company will report higher income on its financial statements compared to its tax return, causing a positive book-tax difference.