Analysis of financial statement disclosures related to marketable securities and quality of earnings. Citibank reports the following information relating to its marketable securities classified as Securities Available for Sale for a recent vear (amounts in millions):

Cash proceeds from sales and maturities of marketable securities totaled $37,600 million in Year 1 I. Gross realized gains totaled $443 million and gross realized losses totaled $1 13 million during Year 1 1. The book value of marketable securities sold or matured totaled $37,008 million.
Interest and dividend revenue during Year 1 1 totaled $1,081 million. Purchases of marketable securities totaled $37,163 million during Year 1 1.

a. Give the journal entries to record the sale of marketable securities during Year 1 1 .

b. Analyze the change in the net unrealized holding gain from $447 million on December 31, Year 10, to $1,227 million on December 31, Year 1 1.

c. Compute the total income (both realized and unrealized) occurring during Year 11 on Citibank's investments in securities.

d. How might the judicious selection of marketable securities sold during Year 1 1 permit Citibank to report an even larger net realized gain? Comment on the quality of earnings and ethics issues this option raises.