Hughie, Inc. uses the Cost Method to account for the net income of Burton, Inc., a company Hughie, Inc. owns 100% of the outstanding stock of. When Burton, Inc. reports quarterly Net Income of $80,000 on 9/30/2X, Hughie, Inc. will:

a)

Debit Investment Income and Credit the Investment $80,000

b)

Debit the Investment and Credit Investment Income $80,000

c)

Debit Dividends Receivable and Credit Investment Income $60,000 as it's only for three quarters of the year

d)

Hughie, Inc. will make no journal entry resulting from this transaction