Hawkeye Company's balance sheet reported, under the equity method, its long-term investment in Raven Company for comparative
Question:
Hawkeye Company's balance sheet reported, under the equity method, its long-term investment in Raven Company for comparative years as follows:
__________________________________________________Dec. 31, 2017_____Dec. 31, 2016
Investment in Raven Company stock (in millions).......................$281..................$264
In addition, the 2017 Hawkeye Company income statement disclosed equity earnings in the Raven Company investment as $25 million. Hawkeye Company neither purchased nor sold Raven Company stock during 2017. The fair value of the Raven Company stock investment on December 31, 2017, was $310 million.
Explain the change in Investment in Raven Company Stock from December 31, 2016, to December 31, 2017.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
In millions Investment in Raven Company stock December 31 20...View the full answer
Financial Accounting
ISBN: 978-1305088436
14th edition
Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac
