Question: Red Hat, Inc. reported comprehensive income from 2008 to 2010 as follows ($ thousands): Required: A. Assuming that Red Hat has not purchased or sold

Red Hat, Inc. reported comprehensive income from 2008 to 2010 as follows ($ thousands):

Required:
A. Assuming that Red Hat has not purchased or sold any available-for-sale securities, what has happened to the value of the available-for-sale investments from 2008 to 2010? Is this change in value reported on the income statement?
B. Which method does Red Hat use to translate foreign subsidiaries? Why?
C. Explain the change in the translation adjustment from 2008 to2010.

2008 2009 2010 $107,278 $78,721 $87,253 Net income Unrealized loss on available- (272) 8,609 for-sale investments (988) (2,266) (309) Foreign currency translation Comprehensive income (8,283) 77,982

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