Orlov Corporation purchased 8,000 shares of Matsey Corporation common stock for $40 per share on January 1, 2009 . Matsey reported net income of $120,000 for 2009 and paid dividends of $42,000 during 2009 . As of December 31, 2009, the market value of Matsey Corporation common stock was $40 per share. Assuming the shares owned by Orlov represent 10 percent of the total outstanding stock of
Matsey, the entry to record the receipt of dividend income in Orlov Corporation's books is:
a. Cash 8,000
Dividend Income 8,000
b. Cash 4,000
Dividend Income 4,000
c. Cash 4,200
Dividend Income 4,200
d. Cash 12,000
Dividend Income 12,000
C
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