West Corporation purchased 15,000 shares of Luffy Corporation common stock for $60 per share on January 2, 2009 . Luffy Corporation reported net income of $1,500,000 for 2009 and paid dividends of $300,000 during 2009 . Luffy has a total of 50,000 shares of common stock outstanding. The entry that would be recorded to recognize the receipt of cash dividend is:
a. Cash 90,000
Dividend Income 90,000
b. Income,Luffy Corporation Investment 90,000
Cash 90,000
c. Cash 90,000
Income,Luffy Corporation Investment 90,000
d. Cash 90,000
Investment in Luffy Corporation 90,000
D
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