Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Complete Guide

Authors: Gerardus Blokdyk

2023rd Edition

1038805538, 978-1038805539

More Books

Students also viewed these Accounting questions