Using your journal entry from requirement

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Reference no: EM13995452

The following disclosure note appeared in the June 27, 2009, 10Q of the Intel Corporation.

Note 6: Available-for-Sale Investments (partial)

Table 1: Available-for-sale investments as of June 27, 2009, and December 27, 2008, were as follows:

Table 2: The before-tax net unrealized holding gains (losses) on available-for-sale investments that have been included in accumulated other comprehensive income (loss) were as follows:

1930_254-b-a-i--3626-.png

Required:

1. Looking only at Table 1, draw a T-account that shows the change between the December 27, 2008, and June 27, 2009, balances for the fair value adjustment associated with Intel's AFS investments for the first half of 2009. By how much did the fair value change during the first half of 2009?

2. Now look at Table 2, and prepare a journal entry that recognizes for the first six months of 2009 any net unrealized holding gains and losses. Ignore income taxes.

3. Using your journal entry from requirement 2, adjust your T-account from requirement 1. Have you accounted for the entire change in the fair value adjustment that occurred during the first half of 2009? If not, speculate as to what could be causing the difference.

Reference no: EM13995452

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