An Investor Owns 25% of the Outstanding Common Stock of Stokes

Multiple Choice

An investor owns 25% of the outstanding common stock of Stokes Corporation.Stokes Corporation declares and pays a $100,000 dividend.What journal entry should the investor prepare?

A) debit Equity-Method Investment for $25,000 and credit Cash for $25,000
B) debit Cash for $25,000 and credit Equity-Method Investment for $25,000
C) debit Cash for $25,000 and credit Dividend Revenue for $25,000
D) debit Dividend Receivable for $25,000 and credit Dividend Revenue for $25,000