On January 1, 2013, Jordan Inc

On January 1, 2013, Jordan Inc. acquired 30% of Nico Corp. Jordan used the equity method to account for the investment. On January 1, 2014, Jordan sold two-thirds of its investment in Nico. It no longer had the ability to exercise significant influence over the operations of Nico. How should Jordan have accounted for this change?

A) Jordan should continue to use the equity method to maintain consistency in its financial statements.
B) Jordan should restate the prior years' financial statements and change the balance in the investment account as if the fair-value method had been used since 2013.
C) Jordan has the option of using either the equity method or the fair-value method for 2013 and future years.
D) Jordan should report the effect of the change from the equity to the fair-value method as a retrospective change in accounting principle.
E) Jordan should use the fair-value method for 2014 and future years but should not make a retrospective adjustment to the investment account.