The investments of Harlon Enterprises included the following cost and fair value amounts:

($ in millions)				Fair Value, Dec. 31
Securities Available-for-Sale	Cost			2016			2017
A Corporation shares	$	22		$	15			na
B Corporation bonds		37			37		$	39
C Corporation shares		16			na			16
D Industries shares		46			47			51
Totals	$	121		$	99		$	106

Harlon Enterprises sold its holdings of A Corporation shares on June 1, 2017, for $16 million. On September 12, 2017, 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 2017 pretax earnings? (Enter your answer in millions, (i.e., 10,000,000 should be entered as 10).)

2-a.

At what amount should Harlon's securities available-for-sale portfolio be reported in its 2017 balance sheet? (Enter your answer in millions, (i.e., 10,000,000 should be entered as 10).)

2-b.

What adjusting entry is needed to accomplish this? Complete the table below and prepare the appropriate journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).)

($ in millions) Securities Available-for-Sale A Corporation shares B Corporation shares Cost at Fair Value at Cost at Fair Value at Dec. 31, 2016 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2017 22 S 145 39 1e3 51 103 37 37 DCorporation shares 46 Totals 105 S 99 S S Amount Adjustment Type 2016 balance for fair value adjustment 2017 balance for fair value adjustment Change in fair value adjustment