Calstone, Inc., prepares a single, continuous statement of comprehensive income. The following situations occurred during the company's 2018 fiscal year:
1. Land that had been held as an investment was sold and a gain was recognized.
2. There was a negative foreign currency translation adjustment at December 31, 2018.
3. Interest revenue was recognized.
4. A division was sold that qualifies as a separate component according to GAAP regarding discontinued operations.
5. There were unrealized holding losses on investments during the year.
6. Restructuring costs were incurred due to downsizing and reorganization of a manufacturing facility.
Required:
For each situation, identify the appropriate reporting treatment from the list below (consider each event to be material).
a. As a component of operating income.
b. As a nonoperating income item (other income or expense).
c. As a discontinued operation.
d. As an item of other comprehensive income.

Question

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The Answer of Calstone, Inc., prepares a single, continuous statement of comprehensive income. The following situations occurred during the company's 2018 fiscal year:
1. Land that had been held as an investment was sold and a gain was recognized.
2. There was a negative foreign currency translation adjustment at December 31, 2018.
3. Interest revenue was recognized.
4. A division was sold that qualifies as a separate component according to GAAP regarding discontinued operations.
5. There were unrealized holding losses on investments during the year.
6. Restructuring costs were incurred due to downsizing and reorganization of a manufacturing facility.
Required:
For each situation, identify the appropriate reporting treatment from the list below (consider each event to be material).
a. As a component of operating income.
b. As a nonoperating income item (other income or expense).
c. As a discontinued operation.
d. As an item of other comprehensive income.