Interpreting Disclosures of Investment Securities

Amgen Inc. reports the following disclosure relating to its accumulated other comprehensive income.

a$.$ Amgen reports unrealized gains and losses on available$-$for$-$sale securities as part of AOCI. Which of the following types of investments could be included in this account? Select all that apply.

b$.$ Consider the securities held in the available$-$for$-$sale portfolio at December $31,2018.$ Identify each of the following statements as true or false.

i$.$ At December $31,2018,$ the fair value of the securities was $$540$ million less than their amortized cost.

ii$.$ At December $31,2018,$ the fair value of the securities was $$540$ million greater than their amortized cost.

False hat$()$ iii. At December $31,2018,$ the fair value of the securities was $$540$ million lower than their value at December $31,2017.$

iv$.$ At December $31,2018,$ the fair value of the securities was $$310$ million lower than their value at December $31,2017.$

i$.$ Decreased by $$540$ million.

ii$.$ Decreased by $$890$ million.

iii. Increased by $$890$ million.

False $$ iv$.$ Decreased by $$306$ million.

d$.$ Amgen increased AOCI by $$584$ million for reclassification adjustments to income. Identify each of the following statements as true or false in describing what this linem

False $$ i$.$ During $2018,$ Amgen sold available$-$for$-$sale securities and realized a loss of $$584$ million.

ii$.$ During $2018,$ Amgen sold available$-$for$-$sale securities and realized a gain of $$584$ million.

iii. During $2018,$ Amgen sold available$-$for$-$sale securities that had unrealized gains of $$584$ million at December $31,2017.$

iv$.$ During $2018,$ Amgen sold available$-$for$-$sale securities that had unrealized losses of $$584$ million at December $31,2017.$