Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions): Equity Investments A Corporation shares B Corporation shares C
The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions): Equity Investments A Corporation shares B Corporation shares C Corporation shares D Industries shares Totals Cost $ 40 55 25 55 Fair Value, Dec. 31 2021 2022 $ 24 N/A 55 $ 57 N/A 24 56 60 $135 $141 $175 Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation shares on June 1, 2022, 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 2022 pretax earnings? 2. At what amount should Harlon's securities equity investment portfolio be reported in its 2022 balance sheet? (For all requirements, enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) 1. million million 2. Amount
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started