(Answered) Question - software inc maintained a large investment in

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Question - 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.

2. The entire portfolio is classified as available-for-sale securities.

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