Cody Industries Owns 35% of Macarthy Company B C $\begin{array}{lrr} \text { Dec. 31 Stock Investments} &66,500\\ \text { Revenue from Stock Investments } &&66,500\\\end{array}$

Cody Industries owns 35% of Macarthy Company. For the current year, Macarthy reports net income of $250,000 and declares and pays a $60,000 cash dividend. Which of the following correctly presents the journal entries to record Cody's equity in Macarthy's net income and the receipt of dividends from Macarthy? a.
$\begin{array}{ll} \text { Dec. 31 Stock Investments } &87,500\\ \text { Revenue from Stock Investments } &&87,500\\ \text { Dec. 31 Cash } &21,000\\ \text { Stock Investments } &&21,000\\\end{array}$


b.
$\begin{array}{lrr} \text { Dec. 31 Stock Investments} &87,500\\ \text { Revenue from Stock Investments } &&87,000\\ \text { Dec. 31 Cash} &60,000\\ \text {Stock Investments } &&60,000\\\end{array}$

c.
$\begin{array}{lrr} \text { Dec. 31 Stock Investments} &66,500\\ \text { Revenue from Stock Investments } &&66,500\\\end{array}$

d.
$\begin{array}{lrr} \text { Dec. 31 Revenue from Stock Investments } &87,500\\ \text {Stock Investments } &&87,500\\ \text { Dec. 31 Stock Investments} &21,000\\ \text { Cash } &&21,000\\\end{array}$