Compute the net decrease in the investment

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JPMorgan Chase carries portfolios of both trading securities and available-for-sale securities. At the end of 2008 and 2007, the trading securities were valued at $347.4 billion and $414.3 billion, respectively; and the available-for-sale securities were valued at $205.9 billion and $85.4 billion, respectively. Together, the investments comprise about 25 percent of the company's total assets as of December 31, 2008. Unrealized gains reported on the 2008 income statement totaled $9.9 billion.

REQUIRED:

a. Trading securities are carried on the balance sheet at market value. Compute the net decrease in the investment in trading securities during 2008.

b. The net increase in the investment in available-for-sale securities reported on the statement of cash flows during 2008 was approximately $107.4 billion. Compute the unrealized net gains on the available-for-sale securities during 2008. On which financial statement would this dollar amount be found?

Reference no: EM131414377

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