Krewatch, Inc., is a vertically integrated manufacturer and retailer of golf clubs and accessories (gloves, shoes, bags, etc.). Krewatch maintains separate financial reporting systems for each of its facilities. The company experienced the following events in 20X1: a. After several years of production problems at the accessories manufacturing plant, Krewatch sold the plant to an investor group headed by a former manager at the plant.
b. Krewatch incurred restructuring costs of $12,562,990 when it eliminated a layer of middle management.
c. Krewatch extinguished $200 million in 30-year bonds issued 18 years ago.
d. Krewatch recognized a gain on this transaction. The company wrote off inventory that was not salable. Equipment was sold at a loss.

Required:
a. Specify the appropriate reporting treatment (consider each event to be material).
b. Indicate whether it would be included in income from continuing operations or it would appear on the income statement below that subtotal.