An investor company acquired $20\%$ of an investee company's voting common stock. The investee's common stock has a readily determinable fair value. The investor has representation on the investee's board of directors, participates in the investee's policy making process and has material business transactions with the investee. Which of the following alternatives best describes the investor's required accounting for its interest in the investee? Select one: a$.$ The investor should recognize as income the dividends it receives from the investee. b$.$ The investor must use the cost$-$based approach to account for its interest in the investee's common stock. $.$ Because the investee's stock has a readily determinable fair value, the investor must use fair value method to account for its interest in the investee's common stock. $.$ The investor should recognize as income a proportionate share of the net income recognized by the investee.