Assume that an investor has accounted for a $300,000 cost, 5% investment in the investee using the fair method (available-for-sale designation). The following additional information is available:

Change from the fair method to the equity method Assume that an investor has accounted for a $300,000 cost, 5% investment in the investee using the fair method (available-for-sale designation). The following additional information is available: Cumulative Dividends 8% of the cumulative Cumulative Fair Value Received Profits Adjustment from Recorded for 8% Investee by investee interest $60,000 $90,000 $140,000 Now, assume that the investor acquires an additional 20% interest in the investee and concludes that it can now exert significant influence over the investee