An Investor Owns 30% of the Outstanding Common Stock of Leshan

Multiple Choice

An investor owns 30% of the outstanding common stock of Leshan Company.Leshan Company reports net income of $100,000 for the current year.What journal entry should the investor prepare?

A) debit Cash for $30,000 and credit Dividend Revenue for $30,000
B) debit Cash for $30,000 and credit Equity-Method Investment for $30,000
C) debit Equity-Method Investment for $30,000 and credit Equity-Method Investment Revenue for $30,000
D) debit Equity-Method Investment Revenue for $30,000 and credit Equity-Method Investment for $30,000