Corvis Ltd.'s balance sheet disclosed its long-term investment in Eastern Inc. under the equity method for comparative

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Corvis Ltd.'s balance sheet disclosed its long-term investment in Eastern Inc. under the equity method for comparative years as follows:

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In addition, the 2016 Corvis Ltd. income statement disclosed equity earnings in the Eastern Inc. investment as $10 million. Corvis Ltd. neither purchased nor sold Eastern Inc. shares during 2016. The fair value of the Eastern Inc. share investment on December 31, 2016, was $107 million.
Explain the change in the Investment in Eastern Inc. Shares balance sheet account from December 31, 2015, to December 31, 2016.
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Accounting Volume 2

ISBN: 978-0176509743

2nd Canadian edition

Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren

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