Abbott Laboratories reports the following disclosure relating to its December 31 comprehensive income.

(a) How is Abbott accounting for its investment in marketable equity securities? How do you know?

(b) Explain how its 2007 financial statements are impacted by Abbott's investment in marketable equity securities.

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Comprehensive Income, net of tax ($ 000s) Foreign currency gain (loss) translation adjustments..... Net actuarial gains and prior service cost and credits and amortization of net actuarial losses and prior service cost and credits, net of taxes of $(225,500) .... Unrealized gains (losses) on marketable equity securities, net of income taxes of $(31,100) in 2007 and $118,500 in 2006.... Net adjustments for derivative instruments designated as cash flow hedges. Other comprehensive income (loss)... Net earnings.... Comprehensive income.. 2007 $1,153,209 342,724 53,844 (39,614) 1,510,163 3,606,314 $5,116,477