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Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 26ISBN: 978-1285743615Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 26ISBN: 978-1285743615 Exercise 36
Equity method for stock investment
Hawkeye Company's balance sheet reported, under the equity method, its long-term investment in Raven Company for comparative years as follows:
In addition, the Year 2 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 Year 2. The fair value of the Raven Company stock investment on December 31, Year 2, was $310 million.
Explain the change in Investment in Raven Company Stock from December 31, Year 1, to December 31, Year 2.
Hawkeye Company's balance sheet reported, under the equity method, its long-term investment in Raven Company for comparative years as follows:
In addition, the Year 2 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 Year 2. The fair value of the Raven Company stock investment on December 31, Year 2, was $310 million.
Explain the change in Investment in Raven Company Stock from December 31, Year 1, to December 31, Year 2.
Explanation
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Equity method for st...
Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac
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