(Learning Objective 1, 6: Explaining and analyzing accumulated other comprehensive income) Big Box Retail Corporation reported stockholders’ equity on its balance sheet at December 31, as follows:
|
Big Box Retail Balance Sheet (Partial) |
|
|
Shareholders’ Equity: |
Millions |
|
Common stock, $0.10 par value— 800 million shares authorized, 300 million shares issued |
$ 30 |
|
Additional paid in capital |
1,088 |
|
Retained earnings |
6,250 |
|
Accumulated other comprehensive (loss) |
(?) |
|
Less Treasury stock, at cost |
(50) |
Required
1. Identify the 2 components that typically make up Accumulated other comprehensive income.
2. For each component of Accumulated other comprehensive income, describe the event that can cause a positive balance. Also describe the events that can cause a negative balance for each component.
3. At December 31, 20X2, Big Box’s Accumulated other comprehensive loss was $53 million. Then during 20X3, Big Box had a positive foreign currency translation adjustment of $29 million and an unrealized loss of $16 million on available for sale investments. What was Big Box’s balance of Accumulated other comprehensive income (loss) at December 31, 20X3?