With the exercise given, prepare an income statement.

P4-5 (L03,4,5,6) (Unusual or Infrequent Items) Presented below is a combined single-step income and retained earnings statement for Nerwin Company for 2017. 6000 omitted) Net sales revenue $6-40,000 Costs and expenses Cost of goods sold $500,000 Selling general, and administrative expenses 66,000 Other, net 17.000 5R36.00 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./200) 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 experses" for 2017 included a charge of $8,500,000 that was usual but infrequently occurring Problems 189 2. "Other, net" for 2017 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.)