On July 1, 2019, an investor company owns 20% of the common stock of an Investee and can exercise significant influence over the investee. On July 1, 2019, immedlately preceding the sale of 10% of the...

Extracted text: On July 1, 2019, an investor company owns 20% of the common stock of an Investee and can exercise significant influence over the investee. On July 1, 2019, immedlately preceding the sale of 10% of the investee to an unaffiliated party, the balance of the Equity Investment account was $50,000. The Investor company sold the 106 Interest in the Investee for $30,000. The Investor company determined that after the sale of 10% it could no longer exert significant influence and that the remalning 106 investment has a readily determinable fair value. Immediately after the sale of the 10% interest, what is the carrying amount (I.e., balance) of the Equlty Investment and what method of accounting must the Investor use for the Equity Investment? Select one: a, Balance - $25,000 Method - Equity b. Balance $25,000 Method - Fair value C. Balance $30,000 Method - Fair value d. Balance- $ 30,000 Method Cost-based