The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions):

Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation shares on June 1, 2025, for $15 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 pretax earnings?
2. At what amount should Harlon’s securities equity investment portfolio be reported in its 2025 balance sheet?

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Equity Investments A Corporation shares B Corporation shares C Corporation shares D Industries shares Totals Cost $ 20 35 15 45 $115 Fair Value, Dec. 31 2024 2025 $ 14 35 na 46 $95 na $37 14 50 $101