Corvis Companys balance sheet disclosed its long-term investment in Mid-American Company under the equity method for comparative

Question:

Corvis Company€™s disclosed its long-term investment in Mid-American Company under the equity method for comparative years as follows:

In addition, the 2011 Corvis Company income statement disclosed equity earnings in the Mid-American Company investment as $10 million. Corvis Company neither purchased nor sold Mid-American Company stock during 2011. The fair value of Mid-American Company stock investment on December 31, 2011, was $107.
Explain the change in the Investment in Mid-American Company Stock balance sheet account from December 31, 2010, to December 31,2011.

Balance Sheet
Balance 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...