Exercise #1 The following income statement items appeared on the adjusted trial balance of Cougar Manufacturing Corporation for the year ended December 31, 2016: sales revenue, $15,300,000; cost of goods sold, $6,200,000; selling expenses, $1,300,000; general and administrative expenses, $800,000; interest revenue, $85,000; interest expense, $180,000. Income taxes have not yet been recorded. The company's income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2016. All transactions are material in amount. Investments were sold during the year at a loss of $220,000. Cougar also had unrealized gains of $320,000 for the year on investments that were classified as Available-for-Sale. One of the company's factories was closed during the year. Restructuring costs incurred were $1,200,000. During the year, Cougar completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of $560,000 in 2016 prior to the sale, and its assets were sold at a gain of $1,400,000. In 2016, the company's accountant discovered that depreciation expense in 2015 for the office building was understated by $200,000. Foreign currency translation losses for the year totaled $240,000. Required: 1. Prepare Cougar's, continuous multiple-step statement of comprehensive income for 2016, including earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares were issued on July 1, 2016. 2. Prepare a separate statement of comprehensive income for 2016.