Perry Investments Bought 2,000 Shares of Able, Inc $\quad$ 240
CR Dividend Income

Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 2015, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 2015 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 2015. At the end of 2015, the market value of the Able stock was $18,000 and the market value of the Baker stock was $28,000. The stocks were purchased for short-term speculation. Perry owns 10% of each company.
-Perry should record the receipt of the Baker dividend as

A) DR Cash $\quad$ 240
CR Dividend income $\quad$ 240
B) DR Dividends receivable $\quad$ 2,400
CR Dividend income $\quad$ 2,400
C) DR Cash $\quad$ 2,400
CR Investment in Baker $\quad$ 2,400
D) DR Cash $\quad$ 2,400
CR Dividends receivable $\quad$ 2,400