7 . The investments of Harlon Enterprises included the following cost and fair value amounts ( $...
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Question:
The investments of Harlon Enterprises included the following cost and fair value amounts $ in millions:
Fair Value, December
Equity Investments Cost
A Corporation Shares $ $ NA
B Corporation Shares $
C Corporation Shares NA
D Industries Shares
Totals $ $ $
Additional information:
Harlon accounts for its equity investment portfolio using the fair value method.
Harlon sold its holdings of A Corporation shares on June for $ million.
On September Harlon purchased the C Corporation shares for $ million.
a What is the effect of the sale of the A Corporation shares and the purchase and holding of the C Corporation shares on Harlons net income ignore tax effects
b What is the effect of holding B Corporation shares and D Corporation shares on Harlons net income ignore tax effects
c At what amount should Harlon report its equity investment portfolio in its balance sheet?
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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