In 1988. SEARS. ROEBUCKAND CO. changed its method of accounting for income taxes. The FASB required the new principle to be applied retroactively, but prior years' financial statements were not required to be restated. The change decreased 1988 income from continuing operations by \($177.6\) million. However, the cumulative effect on prior years was a gain of \($544.2\) million (net of taxes).

(a) Assuming income from continuing operations for 1988 was \($1,032.3\) million, complete Sears' income statement for 1988, assuming no other irregular or extraordinary items. Assume 500 million shares of common stock were outstanding during the period.

(b) How would your answer in (a) differ if Sears were a non-U.S. company reporting using the provisions of IAS 8?