Dec. 31, Year 2 Dec. 31, Year 1 Investment in Raven Company stock (in millions) $281 $264

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter6: Investing And Financing Activities
Section: Chapter Questions
Problem 3.6C
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Hawkeye Company’s balance sheet reported, under the equity method, its long-term investment in Raven Company for comparative years as follows:

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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.

                                                                         

Dec. 31, Year 2
Dec. 31, Year 1
Investment in Raven Company stock (in millions)
$281
$264
Transcribed Image Text:Dec. 31, Year 2 Dec. 31, Year 1 Investment in Raven Company stock (in millions) $281 $264
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