Question
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 |
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Years Ended December 31 | 2018 |
| 2017 |
| 2016 | ||||||
Net income | $ | 944 |
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| $ | 774 |
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| $ | 629 |
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Other comprehensive income: |
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Change in net unrealized gains on investments, net of tax of $27, ($15), and $24 in 2018, 2017, and 2016, respectively |
| 40 |
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| (25 | ) |
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| 32 |
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Other |
| (3 | ) |
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| (1 | ) |
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| 2 |
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Total comprehensive income | $ | 981 |
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| $ | 748 |
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| $ | 663 |
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Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows:
| ($ in millions) | |||||
| 2018 | 2017 | ||||
Shareholders equity: |
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Common stock |
| 375 |
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| 375 |
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Additional paid-in capital |
| 8,979 |
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| 8,979 |
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Retained earnings |
| 8,059 |
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| 7,503 |
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Accumulated other comprehensive income |
| 125 |
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| 88 |
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Total shareholders equity | $ | 17,538 |
| $ | 16,945 |
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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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