Factor Limited Acquired a 25% Investment in Red Limited for $31

Factor Limited acquired a 25% investment in Red Limited for $31 000. Red Limited declared and paid a dividend of $10 000. Factor Limited does not prepare consolidated financial statements. Which of the following is the appropriate entry for Factor Limited to record this dividend?

A) DR Investment in associate $2500 CR Dividend revenue $2500
B) DR Cash $2500 CR Investment in associate $2500
C) DR Dividends received $2500 CR Cash $2500
D) DR Cash $2500 CR Dividend revenue $2500