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

Question:

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

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.

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...