Roe Corporation Owns 2,000 Shares of WRJ Corporation Stock

Multiple Choice

Roe Corporation owns 2,000 shares of WRJ Corporation stock. WRJ Corporation has 25,000 shares of stock outstanding. WRJ paid $4 per share in cash dividends to its stockholders. The entry to record the receipt of these dividends is:

A) Debt Long-Term Investment, $8,000; credit Cash, $8,000.
B) Debit Unrealized Gain-Equity, $8,000; credit Cash, $8,000.
C) Debit Cash, $8,000; credit Long-Term Investments, $8,000.
D) Debit Cash, $8,000; credit Unrealized Gain-Equity, $8,000.
E) Debit Cash, $8,000; credit Dividend Revenue, $8,000.