Che On July 1, 2018, 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, 2018, for $50,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: Sales Cost of goods sold Administrative expenses Selling expenses Operating income before taxes 1/1/18-9/30/18 $ 400,000 (290,000) (50,000) (20,000) $ 40,000 2017 $ 500,000 (320,000) (40,000) (30,000) $ 110,000 In addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: 1. A fire caused $50,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event. 2. Inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $5,000. B. Income taxes have not yet been recorded. equired: epare a multiple-step income statement for the Reed Company for 2018, showing 2017 information in comparative format, including come taxes computed at 40% and EPS disclosures assuming 300.000 shares of common stock. (Amounts to be deducted should e indicated with a minus sign. Round EPS answers to 2 decimal places.)