The 2016 annual report of Bank of America includes the following footnote related to its available-for-sale debt securities:

a. What amount will Bank of America report for available-for-sale debt securities on the balance sheet? Explain.
b. How do gross unrealized gains and losses arise on these available-for-sale debt securities?
c. Calculate the net unrealized gains or losses for 2016.
d. How do these unrealized gains and losses affect Bank of America's 2016 income statement?
e. How do these unrealized gains and losses affect Bank of America's 2016 balance sheet?

Question

The 2016 annual report of Bank of America includes the following footnote related to its available-for-sale debt securities: 
  
a. What amount will Bank of America report for available-for-sale debt securities on the balance sheet? Explain.
b. How do gross unrealized gains and losses arise on these available-for-sale debt securities?
c. Calculate the net unrealized gains or losses for 2016.
d. How do these unrealized gains and losses affect Bank of America's 2016 income statement?
e. How do these unrealized gains and losses affect Bank of America's 2016 balance sheet?

Quizplus · Accepted Answer

The Answer of The 2016 annual report of Bank of America includes the following footnote related to its available-for-sale debt securities: 
  
a. What amount will Bank of America report for available-for-sale debt securities on the balance sheet? Explain.
b. How do gross unrealized gains and losses arise on these available-for-sale debt securities?
c. Calculate the net unrealized gains or losses for 2016.
d. How do these unrealized gains and losses affect Bank of America's 2016 income statement?
e. How do these unrealized gains and losses affect Bank of America's 2016 balance sheet?

The 2016 Annual Report of Bank of America Includes the Following