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 Codys equity in Macarthys net income and the receipt of dividends from Macarthy?

a. Dec. 31 Stock Investments 87,500

Revenue from Stock Investments . 87,500

Dec. 31 Cash 21,000

Stock Investments 21,000

b. Dec. 31 Stock Investments 87,500

Revenue from Stock Investments . 87,500

Dec. 31 Cash 60,000

Stock Investments 60,000

c. Dec. 31 Stock Investments 66,500

Revenue from Stock Investments 66,500