None The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions):Fair Value, December 31Equity InvestmentsCost20242025A Corporation shares$ 32$ 20B Corporation shares4747C Corporation sharesD Industries sharesTotals21$ 492051$ 1515256$ 119$ 125Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation shares onJune 1, 2025, for $21 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 Harlon's 2025 pretaxearnings?2. At what amount should Harlon's securities equity investment portfolio be reported in its 2025 balance sheet?Note: For all requirements, enter your answers in millions, (i.e., 10,000,000 should be entered as 10). Leave no cells blank - becertain to enter "O" wherever required.1.2. Amountmillionmillion

1) Effect on Pre-tax EarningsFirst, we compute if there's any gain or loss on the sale of A…

Answered: The investments of Harlon Enterprises…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 12CE

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