Broncos Ltd acquired a 40% interest in Bennett Ltd, which gave Broncos Ltd significant influence over Bennett Ltd. Broncos holds other equity investments but does not prepare consolidated financial statements. Bennett Limited declared dividend of $20,000 during the current financial period.

What would be the journal entry in relation to the dividend?

Select one:

A.

Dr Dividend receivable $8 000

Cr Investment $8 000

B.

Dr Cash $8 000

Cr Dividend paid $8 000

C.

Dr Cash $8 000

Cr Investment $8 000

D.

Dr Dividend paid $8 000

Cr Dividend receivable $8 000