Question
Fragrance International, a large perfume manufacturer, reported the following in its 2018 annual report to shareholders: ACCUMULATED OTHER COMPREHENSIVE INCOME The components of accumulated other
Fragrance International, a large perfume manufacturer, reported the following in its 2018 annual report to shareholders: ACCUMULATED OTHER COMPREHENSIVE INCOME The components of accumulated other comprehensive income (loss) ("AOCI") included in the accompanying consolidated balance sheets consist of the following:
YEAR ENDED JUNE 30 | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
($ in millions) | ||||||||||||
Net unrealized holding investment gains, beginning of year | $ | 2.9 | $ | 13.9 | $ | 6.1 | ||||||
Unrealized holding investment gains (losses) | (5.0 | ) | (18.3 | ) | 13.0 | |||||||
Provision for deferred income taxes | 2.0 | 7.3 | (5.2 | ) | ||||||||
Net unrealized holding investment gains (losses), end of year | (0.1 | ) | 2.9 | 13.9 | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEAR ENDED JUNE 30 | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
($ in millions) | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Capital expenditures | (203.2 | ) | (192.2 | ) | (180.9 | ) | ||||||
Acquisition of businesses, net of acquired cash | (18.5 | ) | (16.0 | ) | (180.5 | ) | ||||||
Purchases of long-term investments | -- | -- | (15.9 | ) | ||||||||
Proceeds from disposition of long-term investments | 4.7 | 1.9 | 3.0 | |||||||||
NET CASH FLOWS USED FOR INVESTING ACTIVITIES | (217.0 | ) | (206.3 | ) | (374.3 | ) | ||||||
Investments sold during 2018 originally cost $3.0 million. What was the after-tax realized gain or loss on the sale of available-for-sale securities in 2018? Assume a 40% tax rate. (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started