Norse Manufacturing Inc. prepares an annual single, continuous statement of income and comprehensive income.

The following situations occurred during the company’s 2013 fiscal year:

1. Restructuring costs were incurred due to the closing of a factory.

2. Investments were sold, and a loss was recognized.

3. Gains from foreign currency translation were recognized.

4. Interest expense was incurred.

5. A division was sold that qualifies as a separate component of the entity according to GAAP.

6. Obsolete inventory was written off.

7. The controller discovered an error in the calculation of 2012’s patent amortization expense.

8. A volcano destroyed a storage facility on a South Sea island. The event is considered to be unusual and nfrequent in occurrence.

Required:

1. For each situation, identify the appropriate reporting treatment from the list below (consider each event to be aterial).

a. As a component of operating income.

b. As a nonoperating income item (other income or expense).

c. As a separately reported item.

d. As an other comprehensive income item.

e. As an adjustment to retained earnings.

2. Identify the situations that would be reported net-of-tax.