Dominion Resources,Inc. is one of the nation's largest producers of energy. Corporate headquarters are in Richmond, Va. The following is an excerpt from a recent annual report.

INVESTMENT SECURITIES (IN PART)
Available-for-sale securities are reported at fair value with realized gains and losses and any other-than-temporary declines in fair value included in other income and unrealized gains and losses reported as a component of AOCI, net of tax.
Dominion's statement of comprehensive income reported an “Unrealized gain on investment securities, net of $83 million tax expense of $126 million.”

Required:
1. Explain how investment securities classified as available for sale are accounted for.
2. What would have been Dominion's journal entry to reflect the fair value of the investments?