Change from significant influence to passive influence, no readily determinable fair value, and orderly transaction

On March $15,2022,$ an investor company owns $35\%$ of the outstanding common stock of an investee and can exercise significant influence over the investee. On March $15,2022,$ immediately preceding the sale of $20\%$ of the investee$$s outstanding common stock to an unaffiliated party, the balance of the Equity Investment account was $$87,500.$ The investor company sold the $20\%.$ interest in the investee for $$75,000$ The investor company determined that after the sale of its $20\%$ interest it could no longer exert significant influence over the investee, that the remaining $15\%$ investment does not have a readily determinable fair value and that the transaction resulting in the loss of significant influence constitutes an orderly exchange. Immediately after the sale of the $20\%$ interest, what is the carrying amount $($i$.$e$.,$ balance$)$ of the Equity Investment $($i$.$e$.,$ after all required adjustments$)$ and what method of accounting will the investor use for the Equity Investment if the investor does not wish to apply the Level $2$ and Level $3$ measurement techniques described in FASB ASC $820$: Fair Value Measurement?

Select one:

a$.$

BalanceMethod$$56,250$Cost$-$based

b$.$

BalanceMethod$$56,250$Fair value

c$.$

BalanceMethod$$37,500$Equity

d$.$

BalanceMethod$$37,500$Cost$-$based