Interpreting Disclosures of Available-for-Sale Securities Use the following year-end footnote information from Cisco Systems, Inc.'s 10-K report to answer parts a and b.

($ millions)	2014
Cost of available-for-sale investments securities	$44,619
Gross unrealized gains	759
Gross unrealized losses	(30)
Fair value of available-for-sale investments securities	$45,348

a. At what amount is its available-for-sale investments reported on Cisco's 2014 balance sheet?

$Answer million

b. How is its net unrealized gain of $729 million ($759 million - $30 million) reported by Cisco in its financial statements?

The net unrealized gain is reported as a component of AOCI in the shareholders equity section of the balance sheet.

The net unrealized gain is reported as investment income on the income statement.

The net unrealized gain is not reported in the financial statements until the gain (or loss) is realized.