Microsoft's $202010-K$ includes the following information relevant to its available$-$for$-$sale investments in Note $17-$Accumulated Other Comprehensive Income $($Loss$)$:

Required:

Prepare a journal entry to record unrealized gains for $2020.($Hint: $$3,987$ is net of tax effects, so you will need to add back tax effects to show the amount of pretax unrealized gain.$)$

Prepare a journal entry to record Microsoft's reclassification adjustment for $2020($pretax$).$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

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