In the share holders’ equity section of its 2008 and 2009 balance sheets, H&R Block reported accumulated other comprehensive income balances of $2.5 million and negative $11.6 billion, respectively. The 2009 income statement reported net income of $ 486 million. During 2009 the net company incurred an additional $10 million loss on foreign currency translations. Neither item affected earnings, but both reduced shareholders’ equity.

(a) Compute comprehensive income for 2009.

(b) Describe how these activities are reflected on H&R Block’s balance sheet, income statement and statement of shareholders’ equity.