On January 1, 2020, Dingman Company purchased 15% of the voting common stock of Honigman Corp. Later, on January 1, 2022, Dingman increased their holdings to 32% of Honigmans voting common stock. If Dingman achieves significant influence with this additional investment, how must Dingman account for the change to the equity method?

Group of answer choices

a-It must use the equity method for 2022 but should make no changes in its financial statements for 2020 and 2021.

b-It must restate the financial statements for 2021 as if the equity method had been used then.

c-It must restate the financial statements for 2020 and 2021 as if the equity method had been used for those two years.

d-It should record a prior period adjustment at the beginning of 2022 but should not restate the financial statements for 2020 and 2021.

e-It should prepare consolidated financial statements for 2022.