The following disclosure note appeared in the December 28, 2013, annual financial statement of the Intel Corporation.

Question:

Note 5: Cash and Investments: Available-for-Sale Investments (in part)

Table 1: Available-for-sale investments as of December 28, 2013, and December 29, 2012, are shown at the top of the next page.

Table 2: The before-tax net unrealized holding gains (losses) on available-for-sale investments that have been included in accumulated other comprehensive income (loss) are shown after Table 1 on the next page.

Required:

1. Considering only Table 1, draw a T-account that shows the change between December 29, 2012, and December 28, 2013, in balances for the fair value adjustment associated with Intel's AFS investments. By how much did fair value change during 2013?

Table 1

The following disclosure note appeared in the December 28, 2013,

Table 2

2. Now also consider Table 2. Prepare a journal entry to recognize the "change in unrealized holding gains (losses) on available-for-sale investments", and determine how that journal entry would affect the T-account prepared in requirement 1.
3. Considering Table 2 again, how would the "adjustment for (gains) losses on available-for-sale investments included in net income" affect the T-account? Have you accounted for the entire change in the fair value adjustment that occurred during 2013? Speculate as to what might explain any difference.