The following income statement items appeared on the adjustedtrial balance of Schembri Manufacturing Corporation for the yearended December 31, 2021 ($ in thousands): sales revenue, $15,300;cost of goods sold, $6,200; selling expenses, $1,300; general andadministrative expenses, $800; interest revenue, $40; interestexpense, $180. Income taxes have not yet been recorded. Thecompany’s income tax rate is 25% on all items of income or loss.These revenue and expense items appear in the company’s incomestatement every year. The company’s controller, however, has askedfor your help in determining the appropriate treatment of thefollowing nonrecurring transactions that also occurred during 2021($ in thousands). All transactions are material inamount.

1. Investments were sold during the year at a loss of $220.Schembri also had an unrealized gain of $320 for the year oninvestments in debt securities that qualify as components ofcomprehensive income.
2. One of the company’s factories was closed during the year.Restructuring costs incurred were $1,200.
3. During the year, Schembri completed the sale of one of itsoperating divisions that qualifies as a component of the entityaccording to GAAP. The division had incurred a loss from operationsof $560 in 2021 prior to the sale, and its assets were sold at again of $1,400.
4. In 2021, the company’s accountant discovered that depreciationexpense in 2020 for the office building was understated by$200.
5. Negative foreign currency translation adjustment for the yeartotaled $240.

Required:
1. Prepare Schembri’s single, continuousmultiple-step statement of comprehensive income for 2021, includingearnings per share disclosures. One million shares of common stockwere outstanding at the beginning of the year and an additional400,000 shares were issued on July 1, 2021.
2. Prepare a separate statement of comprehensiveincome for 2021

SCHEMBRI MANUFACTURING CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2021 ($ in 000s) Gross profit Operating expenses: Total operating expenses Operating income Other income (expense): Other income, net Income from continuing operations before income taxes Income from continuing operations Discontinued operations: Income on discontinued operations Net income Other comprehensive income, net of tax: Comprehensive income Earnings per share: Net income