he following disclosure note appeared in the December 31, 2016, annual report of the Intel Corporation. Note 5: Cash and Investments (partial) Available-for-sale investments as of December 31, 2016, and December 26, 2015, were as follows:

	December 31, 2016																				December 26, 2015
($ in millions)	Adjusted Cost					Gross Unrealized Gains					Gross Unrealized Losses					Fair Value					Adjusted Cost					Gross Unrealized Gains					Gross Unrealized Losses					Fair Value
Corporate debt		$	3,847				$	4				$	(14)				$	3,837				$	4,169				$	3				$	(11)				$	4,161
Financial institution instruments			6,098					5					(11)					6,092					11,140					1					(2)					11,139
Government debt			1,581										(8)					1,573					748										(1)					747
Marketable equity securities			2,818					3,363					(1)					6,180					3,254					2,706										5,960
Total available-for-sale investments		$	14,344				$	3,372				$	(34)				$	17,682				$	19,311				$	2,710				$	(14)				$	22,007

Intel also indicates the following: During 2016, we sold available-for-sale investments for proceeds of $4.1 billion. . . . The gross realized gains on sales of available-for-sale investments were $530 million in 2016. Intels Note 16 (Other Comprehensive Income) indicates unrealized holding gains of $1,170 million during 2016, and a reclassification adjustment of $530 for gains that had previously been included in OCI and recorded in the fair value adjustment but which were now being included in net income after being realized upon sale. Required: 1. Prepare a T-account that shows the change between the December 26, 2015, and December 31, 2016, balances for the fair value adjustment associated with Intels AFS investments for 2016. By how much did the fair value adjustment change during 2016? 2. Prepare a journal entry that records any unrealized holding gains and losses that occurred during 2016. Ignore income taxes. 3. Prepare a journal entry that records any reclassification adjustment for available-for-sale investments sold during 2016. Ignore income taxes. 4. Using your journal entries from requirements 2 and 3, adjust your T-account from requirement 1. Have you accounted for the entire change in the fair value adjustment that occurred during 2016?

• Required 4

Prepare a T-account that shows the change between the December 26, 2015, and December 31, 2016, balances for the fair value adjustment associated with Intels AFS investments for 2016. By how much did the fair value adjustment change during 2016? (Enter your answers in millions.)

change in the fair value adjustment that occurred during 2016? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare a T-account that shows the change between the December 26, 2015, and December 31, 2016 value adjustment associated with Intel's AFS investments for 2016. By how much did the fair value ad 2016? (Enter your answers in millions.) Fair Value Adjustment, AFS Investments Required Required 2 > E View transaction list Journal entry worksheet 1 Record the $1,170 unrealized gain on investments. ces Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal 2. Prepare a journal entry that records any unrealized holding gains and losses that occurred during 2016. Ignore income ta 3. Prepare a journal entry that records any reclassification adjustment for available-for-sale investments sold during 2016. Ig income taxes. 4. Using your journal entries from requirements 2 and 3, adjust your T-account from requirement 1. Have you accounted for change in the fair value adjustment that occurred during 2016? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using your journal entries from requirements 2 and 3, adjust your T-account from requirement 1. Have you accounted for the entire change in the fair value adjustment that occurred during 2016? (Enter your answers in millions.) Fair Value Adjustment, AFS Investments 2,696 3,338 re