Please read all steps. And please explain in detail I tried codification but I have no idea how to navigate this. Thankyou.

For this assignment, you will use the FASB Codification to complete ONE Research Exercise in each Unit.

TheCodificationis an important research tool that isintegral to accessing thestandards of our profession.

CPA Exam candidates will be required to useit on the CPA Exam to respond to questions. This research activity will develop your research skills using the FASB Codification. Please usethe FASBCodification link inBlackboard to access it.

• For this assignment, you will use the FASB Codification to respond to one research prompt.
• You mustinclude a proper citation to the codification sections where you found your answer. Your responde will likely come from multiple areas of the codification.
• Please ensure your response reflects your interpretation of the research - I do not want it copied from the Codification.

P3.5 (LO 1, 3) (Unusual or Infrequent Items) Presented below is a combined single-step income and retained earnings statement for Nerwin Company for 2025. Additional facts are as follows. 1. "Selling, general, and administrative expenses" for 2025 included a charge of $8,500,000 that was usual but infrequently occurring. 2. "Other, net" for 2025 included a loss on sale of equipment of $6,000,000. 3. "Adjustment required for correction of an error" was a result of a change in estimate (useful life of certain assets reduced to 8 years and a catch-up adjustment made). 4. Nerwin Company disclosed earnings per common share for net income in the notes to the financial statements. Instructions Determine from these additional facts whether the presentation of the facts in the Nerwin Company income and retained earnings statement is appropriate. If the presentation is not appropriate, describe the appropriate presentation and discuss its theoretical rationale. (Do not prepare a revised statement.)