The following is from the 2024 annual report of Kaufman Chemicals, Inc.

Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders’ equity as follows:

Required:
1. What is comprehensive income and how does it differ from net income?
2. How is comprehensive income reported in a balance sheet?
3. From the information provided, determine how Kaufman calculated the $107 million accumulated other comprehensive income in 2024.

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Statements of Comprehensive Income Net income Other comprehensive income: Change in net unrealized gains on AFS investments, net of tax of $22, ($14), and $15 in 2024, 2023, and 2022, respectively Other Total comprehensive income Years Ended December 31 2024 $856 34 (2) $888 2023 $766 (21) (1) $744 2022 $594 23 1 $618