Final answer:
The book vs tax comparison determines how a company accounts and is taxed for its own obligation distribution.
Step-by-step explanation:
The book vs tax comparison for a company distributing its own obligations refers to how the company accounts for the distribution in its financial statements (book treatment) compared to how the distribution is taxed by the government (tax treatment).
Option A) Book and tax treatment are the same means that the company accounts for the distribution in the same way as it is taxed.
Option B) Book treatment is favorable for shareholders means that the distribution is accounted for in a way that benefits the shareholders in terms of financial reporting.
Option C) Tax treatment is favorable for shareholders means that the distribution is taxed in a way that benefits the shareholders.
Option D) Both book and tax treatments are unfavorable for shareholders means that neither the financial reporting nor the taxation of the distribution is advantageous for the shareholders.