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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); Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense 2021 2020 $5,400,000 $4,500,000 3,060,000 2,200,000 1,000,000 875,000 560,000 502,000 170,000 160,000 240,000 240,000 128,000 Loss on sale of assets of discontinued component On July 1, 2021, 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, 2021, for $128,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/2021-9/30/2021 2020 $ 600,000 $ 700,000 Cost of goods sold (390,000) (440,000) Administrative expense (70,000) (60,000) Selling expense (40,000) (40,000) Operating income before taxes $ 100,000 $ 160,000 Sales revenue In addition to the account balances above, several events occurred during 2021 that have not yet been reflected in the above accounts: 1. A fire caused $70,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $60,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $7,000. 3. Income taxes have not yet been recorded. Required: Prepare a multiple-step income statement for the Reed Company for 2021, showing 2020 Information in comparative format, including Income taxes computed at 25% and EPS disclosures assuming 800,000 shares of outstanding common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) REED COMPANY Comparative Income Statements REED COMPANY Comparative Income Statements For the Years Ended December 31 2021 2020 Gross profit (loss) Operating expenses: bok ences Total operating expenses Operating income Other income (expense) Total other income, net Income from continuing operations before income taxes Income from continuing operations Discontinued operations: Income (loss) on discontinued operations Net income Earnings per share: Net income