Signed number representations

Signed Number representations are used to solve the problem of representing negative integers in binary. The problem of trying to store the negative sign (−) of a binary number is that there are no states left to use with which to represent the negative assignment. It is not possible to just use 'off' for minus and 'on' for plus because the computer would have no way of knowing whether it was a digit or a sign.
To overcome this issue computer designers invented two methods for storing negative binary numbers: sign-and-magnitude and 2's complement. These produce alternative representations for signed numbers.
Sign-and-magnitude.
Sign and Magnitude works by changing the most significant bit (MSB - the first digit) to a 1 if the number is negative, and reduce the number by one, for example:
will become...
This method of storing negative binary numbers does not work because binary arithmetic won't work.
1's complement.
1's Complement works by swapping 1s for 0s and the 0s for 1s for example:
will become...
Much like the sign-and-magnitude method this is easily defined as a negative number because its most significant bit is 1
2's complement.
2's Complement is a more difficult way of storing negatives. There are four steps for it:
This method is liked because: