Question

Following is a portion of the investments footnote from Allstate's 2016 10-K. (in millions) 2016 Amortized cost of available-for-sale securities $56,576 Gross unrealized gains 1,710 Gross unrealized losses (447 ) What amount does Allstate report for available-for-sale securities on its 2016 balance sheet?

A. $59,008 million
B. $57,839 million
C. $60,910 million
D. $61,483 million
E. None of the above

Answer 1

bond investment = $57,839 million

so correct option is B. $57,839 million

Step-by-step explanation:

given data

available for sale securities = $56,576

Gross unrealized gains = 1,710

Gross unrealized losses = 447

solution

we know that available for sale investment is report at the fair value on balance sheet

so that Allstate bond investment is report = sale securities + Gross unrealized gains - Gross unrealized losses ............................1

put here value we get

bond investment is report = $56,576 + $1,710 - $447

bond investment = $57,839 million

so correct option is B. $57,839 million