Dell Computer Corporation has significant investment activities. The following items are from Dell’s 2004 financial statements (in millions):

Dell states that all debt and equities securities are classified as available-forsale and are subject to an annual impairment test.
1. Where would you find each of the above items in Dell Computer’s financial statements?
2. What value (cost or fair value) would you expect the first two items on Dell’s balance sheet to represent?
3. What are impairments, and how do they differ from unrealized losses on long-term investments?
Goodwill and Minority Interest

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Short-term investments Long-term investments Investment income $ 835 6,700 180 Gains on sale of investments 16 Purchase of investments 12,099 Sales of investments 10,078 Change in unrealized gains (losses) on long-term investments, net (35)