Coral Limited Acquired a 40% Investment in Reef Limited for $120

Coral Limited acquired a 40% investment in Reef Limited for $120 000. Reef declared and paid a dividend of $30 000. Coral Limited does not prepare consolidated financial statements. The appropriate entry for the investor to record this dividend is:

A) DR Dividends payable $12 000; CR Cash $12 000
B) DR Cash $12 000; CR Dividend revenue $12 000
C) DR Cash $12 000; CR Investment in associate $12 000
D) DR Investment in associate $12 000; CR Dividend revenue $12 000.