Sweet Companys balance sheet disclosed its long-term investment in Sour Company for comparative years as follows: In

Question:

Sweet Company€™s disclosed its long-term investment in Sour Company for comparative years as follows:

In addition, the 2008 Sweet Company income statement disclosed equity earnings in the Sour Company investment as $15 million. Sweet Company neither purchased nor sold Sour Company stock during 2008. The market value of Sour Company stock on December 31, 2008, was $154.
Explain the change in the Investment in Sour Company Stock from December 31, 2007, to December 31,2008.

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...