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

Question

03-12-2021
Business

contestada

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

Respuesta :

Otras preguntas

PLEASE HURRY FAST!!! Jim is building a pen for his puppy. His puppy has an area of 127 square feet. Which is the best estimate for the number of feet of fencing

why does bread dough is needed to be left for hours or a day before baking?

The width, of a rectangle is 1/2 of its length. What are the sides of the rectangle if its perimeter is 63 in

From earth why dose the sun look so much larger than other stars ? Is the sun actually larger than the stars outside our solar system ? Explain your ideals belo

d) At the New York Stock Exchange a certain online gaming stock had an initial public offering (IPO) price of 10 USD per share and is traded 24 hours a day. Ske

Which represents the inverse of the function f(x) 4x? O h(x) = x + 4 O h(x) = x - 4 O h(x) Sx O h(x) = ~x

A car starts from rest and travels for 4.0s with a uniform acceleration of + 1.3m/s^2. The driver then applies the brakes, causing a uniform acceleration of - 1

The sun ____ in the East.

anthougo anthougo · Answer 1 · 2021-12-11T18:38:48+01:00

The sale of the A Corporation stock and the subsequent purchase of the C Corporation stock on Harlon's pretax earnings results in an unrealized holding gain.

The unrealized holding gain occurs because the Harlon Corporation reinvested the sale proceeds with the purchase of C Corporation stock. While the pretax earnings will increase by the gain (difference between the sale proceeds and the investment's book value), the unrealized holding gain is not taxable.

Thus, the effect of the sale increases the pretax earnings in the financial statements but the purchase of another investment cancels its taxation effect for the current moment.

Learn more: https://brainly.com/question/24188658