Marvin Holds 10% of the Common Shares of Pink Limited

Multiple Choice

Marvin holds 10% of the common shares of Pink Limited.For the 2017 fiscal year end, all shareholders received a cash payment to represent their share in the net income of Pink Limited.How would this cash payment be reported in the equity section of Pink Limited's financial statements?

A) as a reduction in the Owner's Equity account
B) as an owner withdrawal, reducing Shareholder's Equity of Pink Limited
C) as a dividend, reducing Shareholder's Equity of Pink Limited
D) This payment would not impact the equity section of the financial statements.