Question

Schaeffer Corporation reports $50 million accumulated other comprehensive income in its balance sheet as a component of shareholders' equity. In a related disclosure note reporting comprehensive income for the year, the company reveals net income of $400 million and other comprehensive income of $15 million.

What was the balance in accumulated other comprehensive income in last year's balance sheet?

Answer 1

$35 million

Step-by-step explanation:

Schaeffer Corporation

50 million accumulated other comprehensive income

Less other comprehensive income of $15 million.

Balance in accumulated other comprehensive income $35 million

Therefore the balance in accumulated other comprehensive income in last year's balance sheet will be $35 million because

two attributes of other comprehensive income are reported which is the components of comprehensive income which was been created during the reporting period($15 million) and the comprehensive income accumulated over the current and prior periods ($50 million )in which the $50 million is said to represents the cumulative total of the changes that occured in each component created during each reporting period throughout all prior years.