Hawkeye Company's balance sheet reported, under the equity method, its long-term investment in Raven Company for comparative

Question:

Hawkeye Company's reported, under the equity method, its long-term investment in Raven Company for comparative years as follows:

In addition, the 2015 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 2015. The fair value of the Raven Company stock investment on December 31, 2015, was $310 million.
Explain the change in Investment in Raven Company Stock from December 31, 2014, to December 31,2015.

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...