CNA Financial Corporation provides the following footnote to its \(200710-\mathrm{K}\) report.

Valuation of investments CNA classifies its fixed maturity securities (bonds and redeemable preferred stocks) and its equity securities as either available-for-sale or trading, and as such, they are carried at fair value. Changes in fair value of trading securities are reported within net investment income. The amortized cost of fixed maturity securities classified as available-forsale is adjusted for amortization of premiums and accretion of discounts to maturity, which are included in net investment income. Changes in fair value related to available-for-sale securities are reported as a component of other comprehensive income. Investments are written down to fair value and losses are recognized in Realized investment gains (losses) on the Consolidated Statements of Operations when a decline in value is determined to be other-than-temporary.

The following table provides a summary of fixed maturity and equity securities investments.

a. At what amount does CNA report its investment portfolio on its balance sheet? In your answer identify the portfolio's fair value, cost, and any unrealized gains and losses.

b. How do CNA's balance sheet and income statement reflect any unrealized gains and/or losses on the investment portfolio?

c. How do CNA's balance sheet and income statement reflect gains and losses realized from the sale of available-for-sale securities?

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Summary of Fixed Maturity and Equity Securities Gross Unrealized Losses Estimated Cost or Gross Amortized Unrealized Less than Greater than Gains 12 Months 12 Months Fair Value December 31, 2007 (in millions) Cost Fixed maturity securities available-for-sale U.S. Treasury securities and obligations of government agencies..... $ 594 $ 93 FA SA $ 687 Asset-backed securities.... 11,776 39 223 183 11,409 States, municipalities and political subdivisions-tax-exempt securities 7.615 144 82 Corporate bonds... 8,867 246 149 Other debt securities 4,143 208 48 ANN 2 7,675 12 8,952 4 4,299 Redeemable preferred stock 1,216 2 160 = 1,058 Total fixed maturity securities available-for-sale...... 34,211 732 662 201 34,080 Total fixed maturity securities trading.. 177 177 Equity securities available-for-sale Common stock. 246 207 452 Preferred stock. 120 7 11 116 Total equity securities available-for-sale..... 366 214 12 568 Total.... $34,754 $946 $674 S201 $34,825