The preliminary 2013 income statement of Alexian Systems, Inc., is presented below:

ALEXIAN SYSTEMS, INC.

Income Statement

For the Year Ended December 31, 2013

($ in millions, except earnings per share)

Revenues and gains:

Net sales ……………………..........……     $ 425

 Interest …………………….................…          3

Other income………………...........…         126

Total revenues and gains ……...           554

Expenses:

Cost of goods sold………….........…        270

Selling and administrative ……………   154

Income taxes ……………….                        52

Total expenses ……………….                   476

Net Income ……………….                       $ 78

Earnings per share ……………….        $3.90

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 2012’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 revised statement.