Presented below is a combined single$-$step income and retained earnings statement for Nerwin Company for $2020.$

$$

$(000$ omitted$)$

Net sales revenue $$

$$640,000$

$$

$$Costs and expenses $$

$$Cost of goods sold $$

$$500,000$

$$

$$Selling$,$ general, and administrative expenses $$

$66,000$

$$

$$Other$,$ net $$

$17,000$

$$

$583,000$

$$

Income before income tax $$

$57,000$

$$

Income tax $$

$19,400$

$$

Net income $$

$37,600$

$$

Retained earnings at beginning of period, as previously reported $$

$141,000$

$$

Adjustment required for correction of error $$

$(7,000)$

$$

Retained earnings at beginning of period, as restated $$

$134,000$

$$

Dividends on common stock $$

$(12,200)$

Retained earnings at end of period $$

$$159,400$

$$

Additional facts are as follows.

$1.$Selling$,$ general, and administrative expenses$$ for $2020$ included a charge of $$8,500,000$ that was usual but infrequently occurring.

$2.$Other$,$ net$$ for $2020$ included a loss on sale of equipment of $$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.$)$