Associate

Profit for year 2007- 30% Associate Profit: $10,000

Dr Investment in Associate [10,000*30%] 3000
Cr Retained Earnings 3000

Associate pays dividend $6000

Dr Cash [6000*30%] 1800
Cr Investment in associate 1800

if we do as above, Investment in associate (asset side) will be have amount $1200 (3000-1800) but retained earnings recorded in consolidated equity side will be $3000. [Note its NOT Retained earnings its only post acquisition earnings]

But if i follow Mike answer here:
https://opentuition.com/topic/ias-28-dividends-paid-by-associate/

“In working W3, consolidated retained earnings, we need to show the group’s share of the associate’s post-acquisition RETAINED earnings – so the dividend proposed should be deducted from the associate’s retained earnings before we calculate our share”