Your client, Jeffrey Smith, President and CEO of Malico Corporation of, took accounting a number of years ago and was unaware of comprehensive income reporting. He is not convinced that any accounting standards exist for comprehensive income.

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Write a formal business letter to your client in good form. Provide the following information to Mr. Smith: a. What authoritative literature addresses comprehensive income? When was it issued? b. Provide the definition of comprehensive income. c. Define classifications within net income; give examples d. Define classifications within other comprehensive income; give examples.

e. What are reclassification adjustments?