(3) OST Inc. reported the following 2016 income statement (in millions): OST Inc. Income statement for the year ended June 30, 2016 Sales Cost of goods sold Gross profit Selling, general and administrative expenses Research and development expenses Restructuring charges Other expenses Pension curtailment gain Total expenses, net Operating profit Interest expense Income from continuing operations before taxes Income tax expense Income from continuing operations Income from discontinued operations - net of tax Net income $135,540 57,667 77,873 31,910 9,278 4,443 6,657 410 51,878 25,995 5,589 20,406 6,122 14,284 2,500 $16,784 Footnotes to OST's financial statements and MD&A disclose the following information: "Restructuring charges" include accruals for severance packages and losses on asset write-downs. The company does not anticipate further restructuring activity. "Pension curtailment gain" is a one-time gain resulted from changes to the company's pension plan. Before you start to forecast OST's earnings for 2017, you decide to make necessary adjustments to OST's income statement. REQUIRED: Prepare an adjusted OST's income statement for the year ended June 30, 2016. Calculate the income tax expense in the adjusted income statement using the effective tax rate as reported in the 2016 unadjusted income statement. (Total for question: 5 marks)