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, 2019, for $25 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 2019 pretax earnings?

2. At what amount should Harlon's securities equity investment portfolio be reported in its 2019 balance sheet?

Fair Value, Dec. 31 Equity Investments Cost 2018 2019 A Corporation shares $ 20 $14 35 na $ 37 B Corporation bonds C Corporation shares D Industries shares 35 15 na 14 45 46 50 Totals $115 $95 $101