On January $1,2018,$ Able Company acquired $100\%$ of Baker Company. On this date, the fair market value of Able$$s net assets equaled their book value and there was no goodwill in the acquisition. During $2018$ Baker declared and paid a $$10,000$ dividend to Able. If Able uses the equity method to account for its investment in Baker what is the worksheet entry needed due to this dividend?

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a

DEBIT: investment in Baker. CREDIT: dividends

b

DEBIT: dividends. CREDIT: investment income.

c

None needed with the equity method.

d

DEBIT: investment income. Credit: dividends.