The adjusted trial balance of Pacific Scientific Corporation on December 31, 2016, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,106; cost of goods sold, $1,240; selling expenses, $126; general and administrative expenses, $105; interest expenses, $35, and gain on sale of investments, $45. Income tax expense has not yet been recorded. The income tax rate is 40%. Ignore EPS diclosures.

1. Refer to the situation described in BE-4. If the company's accountant prepared a multiple-step income statement, what amount would appear in that statement for (a.) operating income and (b.) nonoperating income?

2. Refer to the situation described in BE-4. Prepare a multiple-step income statement for 2016. Ignore EPS disclosures.