Adjust investment account and determine income when additional investment qualifies for equity method of accounting Summary balance sheet and income information for Son Company for two years is as follows (in thousands): On January 2, 2016, Pop Company purchases 10 percent of Son Company for $25,000 cash, and it accounts for its (classified as an available-for-sale security) in Son using the fair-value method. On December 31, 2016, fair value of all of Son's stock is $500,000. On January 2, 2017, Pop purchases an additional 10 percent interest in stock for $50,000 and adopts the equity method to account for the investment. The fair values of Son's assets and abilities were equal to book values as of the time of both stock purchases