When the investor's level of influence changes, it may be necessary to change to the equity method from another method. when the level of ownership rises from less than 20% to a range of 20% to 50%, the equity method typically would become appropriate and the investment account balance should be: - retrospectively adjusted to the balance that would have existed if the equity method had been in effect for prior years-carried over as is with no adjustment necessary-carried over at the fair value that exists on date of transfer-adjusted to reflect amortized cost