Company F Has an Equity Accounted Investment (Owns 20% of the Shares)

Company F has an equity accounted investment (owns 20% of the shares) in Company K, purchased in 20X1, with a carrying amount of $200 000 at year end 20X4.Company K reports no increase in owner's equity for the year ended 20X5 but pays a cash dividend of $60 000, of which Company F receives $12 000.Which journal entry will Company F process in respect of this investment as reported in its consolidated financial statements?

A) Debit to cash, credit to investment in associate, $12 000
B) Debit to investment in associate, credit to share of associate's profit or loss, $12 000
C) Debit to cash, credit to share of associate's profit or loss, $12 000
D) Debit to cash, credit to dividend revenue, $12 000