Posthorn Corporation Acquired 20,000 of the 100,000 Outstanding Common Shares

Posthorn Corporation acquired 20,000 of the 100,000 outstanding common shares of Stamp Company on January 1, 2019, for a cash consideration of $200,000. During 2019, Stamp Company had net income of $120,000 and paid dividends of $80,000. At the end of 2019, shares of Stamp Company were trading for $11 each.
If Posthorn Corporation accounts for its investment in Stamp Company using the equity method, what entry will the company make to record the dividends received from Stamp Company for 2019?
A.
$$\begin{array} { | l | r | r | } \hline & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 16,000 & \\\hline \text { Dividend income } & & \$ 16,000 \\\hline\end{array}$$
B.
$$\begin{array} { | l | r | r | } \hline & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 16,000 & \\\hline \text { Irvestrnent in Starnp Company } & & \$ 16,000 \\\hline\end{array}$$
C.
$$\begin{array} { | l | r | r | } \hline & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 16,000 & \\\hline \text { OCI-Urrealized gair } & & \$ 16,000 \\\hline\end{array}$$
D. No entry requireD.$80,000 $\times$ 20% = $16,000.