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The investments of Harlon Enterprises included the following cost and fair value amounts: ...

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Accounting

The investments of Harlon Enterprises included the following cost and fair value amounts:

($ in millions) Fair Value, Dec. 31
Equity Investments Cost 2018 2019
A Corporation shares $ 30 $ 19 na
B Corporation shares 45 45 $ 47
C Corporation shares 20 na 19
D Industries shares 50 51 55
Totals $ 145 $ 115 $ 121

Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation shares on June 1, 2019, for $20 million. On September 12, it purchased the C Corporation shares. Required: 1. What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlons 2019 pretax earnings? 2. At what amount should Harlon's securities equity investment portfolio be reported in its 2019 balance sheet? (For all requirements, enter your answers in millions, (i.e., 10,000,000 should be entered as 10).)

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