The following information for Darlene Co. is available: Fair Fair Debt Initial Value Value Securities Cost 12/31/Y 1 12/31/Yr 2 Gary Co. $15,000 $18,000 $22,500 Lori Co. 10,500 4,500 10,000 Larry Co. 31,500 27,000 33,000 These debt securities have been correctly classified as available for sale. Changes in their fair values are unrealized holding gains or losses. In the financial statements of Dariene Co. dated December 31, Year 2, the effects on net income and the carrying amount of these securities are Net Income Carrying Amount $0 $65,500 A. OB SO $57,000 C. $7,500 gain $57,000 OD $16,000 gain $65,500 The equity method of accounting for investments in common stock requires that the investment account be O A. Adjusted for changes in the fair value of the investee's common stock. OB Decreased when a loss is declared by the investee. Increased when dividends are declared and paid by the investee. O C. D Increased when the investor recognizes periodic amortization of goodwill related to the purchase