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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