On January 1, 2019, Dermot Company Purchased 15% of the Voting

On January 1, 2019, Dermot Company purchased 15% of the voting common stock of Horne Corp. On January 1, 2021, Dermot purchased 28% of Horne's voting common stock. If Dermot achieves significant influence with this new investment, how must Dermot account for the change to the equity method?

A) It must use the equity method for 2021 but should make no changes in its financial statements for 2020 and 2019.
B) It should prepare consolidated financial statements for 2021.
C) It must restate the financial statements for 2020 and 2019 as if the equity method had been used for those two years.
D) It should record a prior period adjustment at the beginning of 2021 but should not restate the financial statements for 2020 and 2019.
E) It must restate the financial statements for 2020 as if the equity method had been used then.