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It all depends on what you define as first and last. I was assuming the normal left-to-right reading order. I probably should have said you get the 16 least-significant bits and loose the most significant.
Negatives in binary: two's complement. Basically, invert everything, add 1. For example, to find -1, take 00000001, invert the bits (11111110) and add 1 (11111111). This can either be interpreted as 255 or -1.
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