The preliminary 2011 income statement of Alexian Systems, Inc. is presented below:

Additional information:
1. Selling and administrative expenses include $26 million in restructuring costs.
2. Included in other income is an extraordinary gain of $120 million. 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 2010's ending inventory. The amount is material.

Required:
For each of the three additional facts listed above, discuss the appropriate presentation of the item described. Do not prepare a revisedstatement.

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Income Statement ALEXIAN SYSTEMS, INC. For the Year Ended December 31, 2011 (S in millions, expect earning per share) Revenues and gains Net sales Interest Other income Total revenues and gains Expenses Cost of goods sold Selling and administrative Income taxes Total expenses Net Income Earnings per share $425 126 554 270 154 52 476 $78 $3.90