Berkshire Hathaway, Inc., is a public company holding the investments of Warren Buffet, one of the wealthiest
Question:
Berkshire Hathaway, Inc., is a public company holding the investments of Warren Buffet, one of the wealthiest people in the world. Recent financial statements revealed the following:
Accumulated other comprehensive income:
Unrealized appreciation of investments .........$ 2,599
Applicable income taxes ......... .........(905)
Reclassification adjustment for appreciation
included in net earnings ......... .......(1,569)
Applicable income taxes .................549
Foreign currency translation adjustments .........140
Applicable income taxes .................134
Minimum pension liability adjustment ......... ...(38)
Applicable income taxes ..................3
Other ......... ......... ......(34)
Other comprehensive income ...............$ 879
Net earnings .....................$ 7,308
Retained Earnings and Accumulated Other Comprehensive Income balances at the end of the year were $39,189 and $20,435, respectively.
a. Determine the total comprehensive income.
b. Determine the total other comprehensive income as a percent of comprehensive income for Berkshire Hathaway. Round to one decimal place. Discuss the meaning of this percent.
c. Why is unrealized appreciation (gain) included as part of other comprehensive income?
d. Why are the taxes for unrealized gains subtracted in determining other comprehensive income?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
a Comprehensive Income Other Comprehensive Income Net Income 879 7308 8187 b Other comprehensive income as a percent of comprehensive income This is a ...View the full answer
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
