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could someone help me finish this last bit? im stuck on it. thank you Selected information about Income statement accounts for the Reed Company is
could someone help me finish this last bit? im stuck on it. thank you
Selected information about Income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31); Sales revenue Cout of goods sold Administrative expense Selling expense Interest revenue Interest expense LOBS on sale of assets of discontinued component 2021 2020 $4,500,000 $3,600,000 2,890,000 2,020,000 B20,000 695,000 380,000 322.000 152,000 142.000 204,000 204,000 56,000 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 $56,000 less than their book value. Results of operations for the component (Included in the above account balances) were as follows: 27X220223//2021 2020 Sales revenue $420,000 $ 520,000 cont of goods sold (300,000) (332,000) Administrative expense (52,000) (42.000) delling expense (22,000 (22,000) Operating income before taxes $ 46,000 $ 124,000 accounts: In addition to the account balances above, several events occurred during 2021 that have not yet been reflected in the above 1. A fire caused $52,000 in uninsured damages to the main office building. The fire was considered to be an unusual event 2. Inventory that had cost $42,000 had become obsolete because a competitor Introduced a better product. The inventory was written down to its scrap value of $5,000. 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 300,000 shares of outstanding common stock (Amounts to be saved Saved Homework 2020 2021 $ 4,080,000 $3,080,000 2,580,000 1,688,000 1,500,000 1,392,000 Sales revenue Cost of goods sold Gross profit (loss) Operating expenses: Administrative expense Selling expense Loss on building (fire damage) Loss on inventory write-down 768,000 358,000 (52,000) (37,000) 653,000 300,000 0 0 1,037,000 463,000 953,000 439,000 152,000 (204,000) (52,000) 142,000 (204,000) (62,000) Total operating expenses Operating income Other income (expense): Interest revenue Interest expense Total other income, net Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Income from operations of discontinued component Income tax benefit (expense) Income (loss) on discontinued operations Net income Earnings per share: Income from continuing operations Income on discontinued operations Net income 0 0 0 0 $ 0 $ 0 Prey 1 of 7 Next Step by Step Solution
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