Intermediate Accounting, 10e.

J. David Spiceland, 10e.

$ 425 4 126 P4-4 Restructuring costs, discontinued operations, accounting error L04-3, 104-4, L04-5 The preliminary 2021 income statement of Alexian Systems, Inc., is presented below: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($ in millions, except earnings per share) Revenues and gains: Sales revenue Interest revenue Other income Total revenues and gains 555 Expenses: Cost of goods sold 245 Selling and administrative expense Income tax expense 39 Total expenses 438 Net Income S 117 Earnings per share $5.85 Additional Information: 1. Selling and administrative expense includes $26 million in restructuring costs. 2. Included in other income is $120 million in income from a discontinued operation. This consists of $90 million in operating income and a $30 million gain on disposal. The remaining $6 million is from the gain on sale of investments. 3. Cost of goods sold was increased by $ 40 million to correct an error in the calculation of 2020's ending inventory. The amount is material. 154 Required: For each of the three additional facts listed in the additional information, discuss the appropriate presentation of the item described. Do not prepare a revised statement