The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions): Harlon
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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, 2022, 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 2022 pretax earnings?2. At what amount should Harlon?s securities equity investment portfolio be reported in its 2022 balance sheet?
PortfolioA portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Requirement 1 The sale of the A Corporation shares increased Harlons pretax earnings by 1 million In ...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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