Jarvis Company's balance sheet disclosed its long-term investment in Moss Company under the equity method for comparative

Question:

Jarvis Company's balance sheet disclosed its long-term investment in Moss Company under the equity method for comparative years as follows:

In addition, the 2013 Jarvis Company income statement disclosed equity earnings in the Moss Company investment as $15 million. Jarvis Company neither purchased nor sold Moss Company stock during 2013. The fair value of Moss Company stock investment on December 31, 2013, was $125 million.
Explain the change in the Investment in Moss Company Stock balance sheet account from December 31, 2012, to December 31,2013.

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...