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It is now December $31,2023,$ the reporting year$-$end for both IBM and Red Hat. IBM uses the complete equity method to account for its investment in Red Hat on its own books. Assume the acquisition took place July $1,2019.$

Also assume the following information $($in millions$)$:

Information concerning revaluations is as follows:

Revaluation of current assets relate to inventories sold in $2019.$

The revalued property, plant and equipment has a $10-$year life, straight$-$line.

The revaluation of intangible assets consists of $$4,265$ for client relationships with a $10-$year life, $$2,702$ for completed technology with a $9-$year life, and $$997$ for trademarks, with a $20-$year life, all straight$-$line.

No impairment is reported for goodwill.

Revaluation of current liabilities relates to liabilities settled in $2019.$

Revaluation of noncurrent liabilities relates to liabilities settled prior to $2023.$

Red Hat's retained earnings at January $1,2023,$ is $$2,400$; its accumulated other comprehensive loss at January $1,2023,$ is $$60.$ There are no changes in Red Hat's capital stock or treasury stock. For $2023,$ Red Hat reports

income of $$900$ and other comprehensive losses of $$15.$

For the questions below, show your answers in millions, and round to the nearest million.

Note: Do not round intermediate calculations $-$ only round final answers.

Required

a$.$ Calculate the balance in the investment account, reported on IBM's books on July $1,2019,$ and on December $31,2023.$

July $1,2019$$

December $31,2023$ $ Consolidation Eliminating Entries, Several Years Since Acquisition future years. Red Hat's balance sheet at the date of acquisition, plus fair value information, are as follows $($in millions$)$:

$\backslash$table$[[($in millions$),\backslash$table$[[$Fair$],[$Book Value$]],],[$Current assets,$$1,973,$$$1,912],[$Property$,$ plant and equipment,$1,087,563],[$Intangible assets,$119,8,083],[$Goodwill$,764,-],[$Total assets,$$3,943,],[$Current liabilities,$$998,$$$827],[$Noncurrent liabilities,$1,891,2,559],[$Total liabilities,$2,889,],[$Capital stock,$1,712,],[$Retained earnings,$1,317,],[$Treasury stock,$(1,946),],[$Accumulated other comprehensive loss,$(29),],[$Total equity,$1,054,],[$Total liabilities and equity,$$3,943,]]$

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