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Thompson Company purchases 2,000 common shares in Cloak Corporation on January 1, 2020, at $300 per share. The 2,000 common shares represent 25% of Cloak's

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Thompson Company purchases 2,000 common shares in Cloak Corporation on January 1, 2020, at $300 per share. The 2,000 common shares represent 25% of Cloak's total outstanding common shares. For the year end December 31, 2020, Cloak Corporation has a profit of $50,000. It also declares and pays a $10,000 cash dividend. What is the entry to record dividends received on equity investment in Cloak Corporation? it of Select one: a. Debit to cash for $2,500, Credit to interest Revenue for $2,500 b. None of the available choices Debit to Cash for $2.500, Credit to Dividend Revenue for $2,500 d. Debit to Cash for $2,500, Credit to Investment in Cloak Corporation Share for $2,500

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