Microsoft, one of the most successful businesses in the history of commerce, has accumulated a large investment portfolio, which in a recent year consisted of the following (in millions):20

Cash and cash equivalents......................................$ 6,076

Short-term investments-available-for-sale.............25,371

Long-term investments—equity securities...............4,933

Total investments....................................................$36,380

In addition, during the 2009 fiscal year Microsoft had net realized losses on investments of $125 million, $862 million of impairments, unrealized losses of $285 million, and unrealized gains of $1,089 million.

Divide into at least seven groups to discuss each of the four types of investments and the three types of gains or losses. Each group should discuss the nature of each gain or loss and the nature of the investment that gave rise to it. Discuss where each investment and gain or loss would appear in the financial statements. Be prepared to present your group’s findings in class.