Software, Inc. maintained a large investment in marketable securities valued at approximately $42 billion as of the beginning of the year. During the year, the securities produced investment income (dividends and interest income) totaling $2.5 billion. At year-end, the portfolio of marketable securities had appreciated to $45.5 billion.

Calculate the pre-tax income statement effect of the marketable securities if

1. The entire portfolio is classified as trading securities: $______ANSWER _______billion
2. The entire portfolio is classified as available-for-sale securities: $_______ ANSWER ______billion