kayend Corporation purchases 85% of Subil Products' common stock. Assume that Kayend already recorded the acquisition on January 1, 20X1. During the year, Kayend reports operating earnings of $450,000, excluding its income from investing in Subil, and declares dividends of $70,000. Subil reports 20X1 net income of $50,000 and declares dividends of $30,000. Which of the following is Kayend's journal entry to record its share of Subil's income?

Debit Noncontrolling Interest for $42,500; Credit Cash for $42,500

Debit Investment in Subil Products for $42,500; Credit Cash for $42,500

Debit Cash for $42,500; Credit Noncontrolling Interest for $42,500

Debit Investment in Subil Products for $42,500; Credit Income from Subil Products for $42,500