Loeffler Company owns 40% of the common stock of Tetter Co. and uses the equity method to account for the investment. During 2021, Tetter reported income of $260,000 and declared and paid dividends of $90,000. There is no amortization associated with the investment. What journal entries are necessary for Loeffler to recognize the accrual of income earned on the Tetter investment, and Tetter's declaration of dividends during 2021?

Multiple Choice

• Equity in Investee Income	104,000
  Investment in Tetter		104,000
  Dividend Receivable	36,000
  Investment in Tetter		36,000

• Investment in Tetter	104,000
  Equity in Investee Income		104,000
  Dividend Receivable	36,000
  Investment in Tetter		36,000

• Equity in Investee Income	91,000
  Investment in Tetter		91,000
  Dividend Receivable	31,500
  Investment in Tetter		31,500

• Investment in Tetter	91,000
  Equity in Investee Income		91,000
  Dividend Receivable	31,500
  Investment in Tetter		31,500

• None of the other choices are correct.