The End-Of-Period Journal Entries of Pillard Corporation Included the Following

The end-of-period journal entries of Pillard Corporation included the following (explanation omitted) :
The probable explanation for the journal entry is:

A) To accrue cumulative preferred dividend passed by subsidiary's board of directors
B) To record share of subsidiary's net income applicable to preferred stock
C) To apply provisions of the participation clause of preferred stock to the subsidiary's net income
D) Some other explanation