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The following is from the 2018 annual report of Kaufman Chemicals, Inc.: Statements of Comprehensive Income Years Ended December 31 2018 2017 2016 Net income

The following is from the 2018 annual report of Kaufman Chemicals, Inc.:

Statements of Comprehensive Income

Years Ended December 31

2018

2017

2016

Net income

$

944

$

774

$

629

Other comprehensive income:

Change in net unrealized gains on investments, net of tax of $27, ($15), and $24 in 2018, 2017, and 2016, respectively

40

(25

)

32

Other

(3

)

(1

)

2

Total comprehensive income

$

981

$

748

$

663

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

($ in millions)

2018

2017

Shareholders equity:

Common stock

375

375

Additional paid-in capital

8,979

8,979

Retained earnings

8,059

7,503

Accumulated other comprehensive income

125

88

Total shareholders equity

$

17,538

$

16,945

Required: 4. From the information provided, determine how Kaufman calculated the $125 million accumulated other comprehensive income in 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

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