Question

The following is from the 2021 annual report of Kaufman Chemicals, Inc.:

Statements of Comprehensive Income	Years Ended December 31
	2021				2020				2019
Net income	$	790			$	620			$	475
Other comprehensive income:
Change in net unrealized gains on AFS investments, net of tax of $12, ($10), and $10 in 2021, 2020, and 2019, respectively		24				(17	)			18
Other		(1	)			(1	)			2
Total comprehensive income	$	813			$	602			$	495

Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows:

	($ in millions)
	2021			2020
Shareholders’ equity:
Common stock		300			300
Additional paid-in capital		7,565			7,565
Retained earnings		6,645			6,089
Accumulated other comprehensive income		83			60
Total shareholders’ equity	$	14,593		$	14,014

Required:
4. From the information provided, determine how Kaufman calculated the $83 million accumulated other comprehensive income in 2021. (Negative amount should be indicated by a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Answer 1

Answer:

Accumulated other comprehensive income in 2021

= Accumulated other comprehensive income of 2020 + Change in net unrealized gains on AFS investments, net of tax of $12 in 2021 + other net income of 2021

= $60 millions + $24 millions + (-$1 millions)

=$83 millions

Thank you.