$10$

points

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Selected information about income statement accounts for the Reed Company is presented below $($the company's fiscal year ends on December $31)$:

$20242023$

Sales revenue $ $5,200,000$ $ $4,300,000$

Cost of goods sold $3,020,0002,160,000$

Administrative expense $960,000835,000$

Selling expense $520,000462,000$

Interest revenue $166,000156,000$

Interest expense $232,000232,000$

Loss on sale of assets of discontinued component $112,000$

On July $1,2024,$ the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September $30,2024,$ for $$112,000$ less than their book value. Results of operations for the component $($included in the above account balances$)$ were as follows:

$1/1/20249/30/20242023$

Sales revenue $ $560,000$ $ $660,000$

Cost of goods sold $(370,000)(416,000)$

Administrative expense $(66,000)(56,000)$

Selling expense $(36,000)(36,000)$

Operating income before taxes $ $88,000$ $ $152,000$

In addition to the account balances above, several events occurred during $2024$ that have not yet been reflected in the above accounts:

A fire caused $$66,000$ in uninsured damages to the main office building. The fire was considered to be an unusual event.

Inventory that had cost $$56,000$ had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $$7,000.$

Income taxes have not yet been recorded.

Required:

Prepare a multiple$-$step income statement for the Reed Company for $2024,$ showing $2023$ information in comparative format, including income taxes computed at $25\%$ and EPS disclosures assuming $500,000$ shares of outstanding common stock.

Note: Round EPS answers to $2$ decimal places.