The investments of Harlon Enterprises included the following cost and fair value amounts: ($ in millions) Fair Value, Dec. 31 Securities Available-for-Sale 2016 Cost 2017 A Corporation shares B Corporation bonds C Corporation shares $ 20 $14 na $ 37 35 35 15 14 na D Industries shares 50 46 45 Totals $115 $95 $101 Harlon Enterprises sold its holdings of A Corporation shares on June 1, 2017, for $15 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 Harlon's 2017 pretax earnings? 2. At what amount should Harlon's securities available-for-sale portfolio be reported in its 2017 balance sheet?
3. What adjusting entry is needed to accomplish this? What is the effect of the adjustment on Harlon's 2017 pre- tax earnings?

Consider the scenario below and let us know if you believe lauren smith's actions to be ethical. let us know why or why not. lauren smith is the controller for sports central, a chain of sporting goods stores. she has been asked to recommend a site for a new store. lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. lauren also contacted several other shopping plazas and malls, but her uncle’s store turned out to be the most economical place to lease. therefore, lauren recommended locating the new store in her uncle’s shopping plaza. in making her recommendation to management, she did not disclose that her uncle owns the shopping plaza. if management decided to go with lauren's uncle's plaza, what additional information would be needed in the financial statements?

If jobs have been undercosted due to underallocation of manufacturing overhead, then cost of goods sold (cogs) is too low and which of the following corrections must be made? a. decrease cogs for double the amount of the underallocation b. increase cogs for double the amount of the underallocation c. decrease cogs for the amount of the underallocation d. increase cogs for the amount of the underallocation

What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?