The preliminary 2018 income statement of Alexian Systems, Inc., is presented below:

___________________________________ALEXIAN SYSTEMS, INC.

_______________________________________Income Statement

_______________________________For the Year Ended December 31, 2018

_______________________________($ in millions, except earnings per share)

Revenues and gains:

Net sales....................................................................................$ 425

Interest...........................................................................................3

Other income.................................................................................126

Total revenues and gains....................................................................554

Expenses:

Cost of goods sold...........................................................................270

Selling and administrative..................................................................154

Income taxes....................................................................................52

Total expenses................................................................................476

Net Income..................................................................................$ 78

Earnings per share........................................................................$ 3.90

Additional Information:

1. Selling and administrative expenses include $26 million in restructuring costs.

2. Included in other income is $120 million in income from a discontinued operation. This consists of $90 million in operating income and a $30 million gain on disposal. The remaining $6 million is from the gain on sale of investments.

3. Cost of goods sold was increased by $5 million to correct an error in the calculation of 2017's ending inventory. The amount is material.

Required:

For each of the three additional facts listed in the additional information, discuss the appropriate presentation of the item described. Do not prepare a revised statement.