Determine underlying earnings by adjusting the income statement below for non- recurring items and accounting changes. Assume a tax rate of 40 percent. Net sales $12,500 Expenses: Cost of products sold $3,525 Marketing, selling, and administrative 3,075 Advertising and product promotions 1,425 Research and development 1,080 Provision for restructuring 900 Other (30) Total costs and expenses $9,975 Earnings before continuous operations $2,525 before income taxes Provision for income taxes 1,010 Earnings from continuous operations $1,515 Discontinued operations: Earnings (net) $80 Gain on disposal (net) 590 Discontinued operations-total $670 Earnings before cumulative effect of $2,185 accounting change Cumulative effect of accounting change (net) Net income (loss) $2,055 $2,415 $1,875 $1,455 (300) $1,885