Check my work Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): points Sales Cost of goods sold Administrative expenses Selling expenses Interest revenue Interest expense Loss on sale of assets of discontinued component 2018 $4.650.000 2.910.000 850,000 410,000 155,000 210.000 70.000 2017 $3,750.000 2.050.000 725.000 362,000 145,000 210,000 eBook Print 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 $70,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: References Sales Cost of goods sold Administrative expenses Selling expenses Operating income before taxes 1/1/18-9/30/18 $ 450,000 315,000) (55,000 (25,000 $ 55,000 2017 $ 550,000 350,000 (45,000 (35,000 $ 120,000 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 $55,000 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 $45.000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $8,000. 3. Income taxes have not yet been recorded. Required: Prepare a multiple-step income statement for the Reed Company for 2018, showing 2017 information in comparative format, including income taxes computed at 20% and EPS disclosures assuming 500,000 shares of 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 For the Years Ended December 31 2018 2017 Sales revenue Cost of goods sold Gross profit (los) Operating expenses: Administrative Selling Lass from fire damage Loss from write down of obsolete inventory Total operating expenses Operating income Other income (expense) Interest revenue Interest expense Total other expenses (net) Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations 0 0 Income (loss) from operations of discontinued component Income tax benefit (expense) 0 0 0 0 $ $ Income (loss) on discontinued operations Net income Earnings per share: Income from continuing operations Discontinued operations Net income