On January $1,207,$ Romulus Company acquired $30\%$ of the outstanding common stock of Remus Corporation for $$650,000.$ Remus

reported net income and paid dividends for the years ended $207,208,$ and $209,$ as follows:

What entry would Romulus make to record dividends from Remus in $207?$

$1.$Dr$.$ Dividend receivable $21,000$

Cr$.$ Dividend income

$2.$Dr$.$ Dividend receivable $21,000$

Cr$.$ Investment in Remus stock

$3.$Dr$.$ Dividend receivable $21,000$

Cr$.$ Cash

$21,000$

$4.$Dr$.$ Investment in Remus stock $70,000$

Cr$.$ Dividend income

$70,000$

None of the above