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 the Cumulative 8% of Dividends Cumulative Fair Value Received Profits Adjustment from Recorded for 8% Investee by Investee nterest $55,000 $90,000 $135,000 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 Required a. Provide the required journal entries to account for the change from the fair value method to the equity method for the original investment. General Journal Description Debit Credit to remove the unrealized gain from stockholders' equity and the fair value adjustment from the investment account