qustion 8 answear all please

Equity method for stock investment Hawkeye Company's balance sheet reported, under the equity method, its long-term investment in Raven Company for comparative years as follows: Dec. 31, Year 2 Dec. 31, Year 1 Investment in Raven Company stock (in Millions) $281 $264 In addition, the Year 2 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 Year 2. The fair value of the Raven Company stock investment on December 31, Year 2, was $310 million. Explain the change in Investment in Raven Company Stock from December 31. Year 1 to December 31, Year 2 The Raven Company investment is accounted for under the method. Because there were no purchases or sales of Raven Company stock, a dividend must have been received. This would explain how the ending balance of the investment account went from $264 to $281, with $25 million in equity earnings. Because the Investment is accounted for under the method, the is not used for valuation purposes Previous Next > All work saved Email Instructor Save and Exit Submit Assignment for Grading