1 14.28 points Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Book Loss on sale of assets of discontinued component 2024 2023 $ 5,150,000 $ 4,250,000 3,010,000 950,000 2,150,000 825,000 510,000 452,000 165,000 155,000 230,000 230,000 108,000 Print 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 $108,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: References Sales revenue Cost of goods sold i Administrative expense Selling expense Operating incone before taxes 1/1/2024-9/30/2024 $550,000 (365, 000) (65,000) (35,000) $85,000 2023 $650,000 (410,000) (55,000) (35,000) $ 150,000 In addition to the account balances above, several events occurred during 2024 that have not yet been reflected in the above accounts: 1. A fire caused $65,000 in uninsured damages to the main office building. The fire was considered to be an unusual event 2. Inventory that had cost $55,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $6,000 3. 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 800,000 shares of outstanding common stock Note: Round EPS answers to 2 decimal places. Gross profit (loss) Operating expenses: Total operating expenses Operating income Other income (expense): REED COMPANY Comparative Income Statements For the Years Ended December 31 Total other income, net Income from continuing operations before income taxes Income from continuing operations Discontinued operations: Income (loss) from operations of discontinued component Income (loss) on discontinued operations Net income Earnings per share: Net income 2024 2023