Consider the excerpts from the 2007 financial statements of Berkshire Hathaway shown below and on the next page to answer the following questions.
1. What was Berkshire Hathaway€™s comprehensive income in 2007?
2. Make one summary journal entry to record the sale, redemption, and maturity of all securities (both equity and fixed maturity securities) during 2007.
3. Look at the statement of changes in stockholders€™ equity. What is the purpose of the €œReclassification adjustment of investment appreciation included in net earnings€?
4. What journal entry did Berkshire Hathaway make to recognize the change in the market value of its available-for-sale investment securities during 2007? Ignore the reclassification mentioned in (3).

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2007 and 2006, are shown below (inmillions)

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From the statement of cash flows: 2007 2006 2005 Cash flows from investing activities: Purchases of securities with fixed maturities__......$(13.394) (7.747) $(13,937) Purchases of equity securities Sales of securities with fixed maturities Redemptions and maturities of securities with fixed maturities Sales of equity securities Purchases of loans and finance receivables Principal collections on loans and finance receivables . Acquisitions of businesses, net of cash acquired (19.111) 9,17 (8,021) 1,818 10,313 3,778 7.821 9,158 8,054 3,243 7,142 1629 (1.987) (365) 985 1.229 (,602 032 (2387) (5373) (4,571)(2,195) 1.017 Other 798 1.761 Net cash flows from investing activities.....$(13.428) $14.077) $(13.841) From the statement of changes Year Ended December 31 2006 in shareholders' equity: Class A & B Common Stock expertise Capital in Excess of Par Value 2007 2005 Balance at beginning and end of year ..8 8 $ 8 Balance at beginning of year Issuance of Class A and B shares and SQUARZ 430 123 warrant premiums Balance at end of year 131 $26.952 $26,522 $26.399 From the statement of changes in shareholders' equity: Year Ended December 31 2006 2007 2005 Retained Earnings Balance at beginning of year Adoption of new accounting p Net earnings Balance at end of year $58,912 $47,717 $39,189 28 180 110158.526 Accumulated Other Comprehensive Income $2,523 9,278 2,081 (728) Applicable income taxes Reclassification adjustment of investment appreciation (872) (3.246) included in net earnings Applicable income taxes ....5.494) (,646 (6.261) 576 603 1,923 2,191 Foreign currency translation adjustments (26) 257 (102) (22) (359) (26) (62) 38 Applicable income taxes 563 (196) Prior service cost and actuarial gains/losses of defined benefit plans.. Applicable income taxes Other, including minority interests r comprehensive income 357) 5,920 (303) 7,360 (3,075) Adoption of SFAS 158 Accumulated other comprehensive income at beginning of year Accumulated other comprehensive income at end of year....$21.620 $22,977 $17,360 22,977 20.435 Comprehensive income Net earnings .$13,213 $1,015 8,528 r comprehensive income (357)5.920(3,075) $11,856 $16,935 Total comprehensive income From Note 6 to the financial statements: Investment gains (losses) are summarized below (in millions): 2007 2006 2005 Fixed maturity securities- $657 (35) 4,880 Gross gains from sales and other disposals Gross losses from sales and other disposals.... S 792 (23) 279 Equity securities 1,562 (44) (142) 165 $1,811 5,612 Gross gains from sales and other disposals Gross losses from sales (114) (65) $6,196 Losses from other-than-temporary impairments ._.... Other 103 $5,598 From Note 13 to the financial statements: 2007 2006 Deferred tax liabilities: Investments-uealized Deferred charges reinsurance assumed Property, plant and equipment Other appreciation and cost basis differences $13,50 $14,520 687 4,775 2,591 $22,529 $22,573 1,395 4,890 2,743 Deferred tax assets: Unpaid losses and loss adjustment expenses Unearned premiums Accrued liabilities Other ..$(756) (425) (681) (443) ..-.(1,933) (1.843) 373(4.302) Net deferred tax liability $18,156 $18,271