On January 1, 2019, X Inc Which of the Following Journal Entries Would Have to Be

On January 1, 2019, X Inc. purchased 12% of the voting shares of Y Inc. for $100,000. The investment is reported at cost. X does not have significant influence over Y. Y's net income and declared dividends for the following three years are as follows:
$\begin{array}{|r|r|r|}\hline & \text { Net Income } & \text { Dividends } \\\hline 2019 & \$ 50,000 & \$ 20,000 \\\hline 2020 & \$ 70,000 & \$ 80,000 \\\hline 2021 & \$ 30,000 & \$ 60,000 \\\hline\end{array}$ Which of the following journal entries would have to be made to record X's share of Y's dividends paid for 2021?
A.
$\begin{array}{|l|r|r|}\hline & \text { Debit } & \text { Credit } \\\hline \text { Investment in Y } & \$ 7,200 & \\\hline \text { Dividend income } & & \$ 7,200 \\\hline\end{array}$
B.
$\begin{array}{|l|r|r|}\hline & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 7,200 & \\\hline \text { Investment in Y } & & \$ 7,200 \\\hline\end{array}$
C.
$$\begin{array} { | l | r | r | } \hline & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 7,200 & \\\hline \text { Dividend income } & & \$ 7,200 \\\hline\end{array}$$
D. No entry requireD.Share of dividends = $60,000 $\times$ 12% = $7,200.