Company PPP Has a Share Investment In, and Controls Company

Multiple Choice

Company PPP has a share investment in, and controls Company PPP (Owns 70% of the shares, purchased in 20X1) with a carrying amount of $200 000 at year end 20X4.Company QQQ reports an increase in owner's equity of $100 000 for the year ended 20X5 pays a cash dividend of $80 000 from this, of which Company PPP receives $56 000.Which journal entry will Company PPP process in respect of this investment, assuming that AASB 127.38A was not in effect during the period?

A) Debit to cash, credit to investment, $126 000
B) Debit to cash, credit to share of associate's profit or loss, $26 000
C) Debit to cash, credit to dividend revenue, $56 000
D) Debit to cash, $126 000, credit to investment, $56 000, credit to share of associate's profit or loss, $70 000.