Presented below are the balance sheets of Blanco, Inc. and Stalle Company at January 1, 2X13:

Blanco, Inc. Stalle Company

Balance Sheet Balance Sheet

January 1, 2X13 January 1, 2X13

Cash $ 35 Cash $250

Net Fixed Assets 265 Net Fixed Assets 450

Total Assets $300 Total Assets $700

Accounts Payable $ 30 Accounts Payable $ 90

Long-term Bonds Pay. 100 Long-term Bonds Pay. 200

Stockholders' Equity 170 Equity 410

Total Liab. & Equity $300 Total Liab. & Equity $700

On January 1, 2X13, Stalle Company acquired 70% of the outstanding common stock of Blanco, Inc., for $119 in cash. Assume the book value of Blanco's assets and liabilities equals the market value.

If Blanco, Inc., generated net income during 2X13 of $10, and none of the income was the result of intercompany sales, what journal entry would Stalle Company make to reflect this event?

A) No journal entry is necessary.

B) Investment in Blanco, Inc. 7

Investment Revenue 7

C) Investment in Blanco, Inc. 7

Noncontrolling Interest 3

Investment Revenue 10

D) Investment in Blanco, Inc. 10

Investment Revenue 10

E) Investment in Blanco, Inc. 10

Investment Revenue 7

Noncontrolling Interest 3

Note: Please show the math for the answer.