Willcox Financial paid $500,000 for a 35% investment in the common stock of Maverick, Inc. For the first year, Maverick reported net income of $200,000, and at year-end declared and paid cash dividends of $145,000. On the balance-sheet date, the fair value of Willcox's investment in Maverick stock was $400,000. Read the requirements. Requirement 1. Which method is appropriate for Willcox to use in accounting for its investment in Maverick? Why? It would be appropriate for Willcox to use the method of recording its investment in Maverick, Inc.