Question: Hawkeye Company's balance sheet reported, under the equity method, its long-term investment in Raven Company for comparative years as follows: ______________________________________________Dec. 31, 2017_Dec. 31, 2016

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

__________________________________________________Dec. 31, 2017_____Dec. 31, 2016

Investment in Raven Company stock (in millions).......................$281..................$264

In addition, the 2017 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 2017. The fair value of the Raven Company stock investment on December 31, 2017, was $310 million.

Explain the change in Investment in Raven Company Stock from December 31, 2016, to December 31, 2017.

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