es 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 Loss on sale of assets of discontinued component 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 $84,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: Sales revenue Cost of goods sold Administrative expense Selling expense Operating income before taxes 2024 2023 $ 4,850,000 $3,950,000 2,090,000 2,950,000 890,000 765,000 450,000 392,000 159,000 149,000 218,000 218,000 84,000 1/1/2024-9/30/2024 $ 490,000 (335,000) (59,000) (29,000) $ 67,000 2023 $ 590,000 (374,000) (49,000) (29,000) $ 138,000 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 $59,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $49,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $9,000. 3. Income taxes have not yet been recorded. REED COMPANY Comparative Income Statements 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 700,000 shares of outstanding common stock. Note: Round EPS answers to 2 decimal places.

Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 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 $84,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: In addition to the account balances above, several events occurred during 2024 that have not yet been reflected in the above occounts: 1. A fire caused $59,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2 Inventory that had cost $49,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $9,000. 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 700,000 shares of outstanding common stock. Note: Round EPS answers to 2 decimal places. 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 700,000 shares of outstanding common stock. Note: Round EPS answers to 2 decimal places