Hello, I am requesting help with two problems and an explanation for the correct answer. Thank you

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Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2021, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 15, 2021, at a price of $790,000. The book value of the division's assets was $1,390,000, resulting in a before-tax loss of $600,000 on the sale. The division incurred a before-tax operating loss from operations of $270,000 from the beginning of the year through December 15. The income tax rate is 25%. Chance's after-tax income from its continuing operations is $740,000 Required: Prepare an income statement for 2021 beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) CHANCE COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued operations: $ 740,000 Loss from operations of discontinued component (870,000) Income tax benefit 217,500 Loss from operations of discontinued component (652,500) Net income (loss) Earnings per share: Income from continuing operations $ 87,500 7.40 $ Income from discontinued operations (6.53) Net income $ 0.87 Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31) 2020 2021 Sales revenue $4,750,000 $3,850,000 2,930,000 870,000 430,000 157,000 214,000 76,000 Cost of goods sold Administrative expense Selling expense 2,070,000 745,000 372,000 147,000 214,000 Interest revenue Interest expense 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 $76,000 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 Sales revenue 570,000 (362,000) (47,000) (27,000) 470,000 (325,000) (57,000) (27,000) $61,000 Cost of goods sold Administrative expense Selling expense $134,000 Operating income before taxes 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 $57,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $47,000 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 400,000 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 For the Years Ended December 31 2021 2020 Sales revenue $ 4,280,000 $3,280,000 Cost of goods sold 1,708,000 2,605,000 Gross profit (loss) Operating expenses 1,572,000 1,675,000 Administrative expense 813,000 698,000 Selling expense 403,000 345,000 Loss on building (fire damage) 57,000 Loss on inventory write-down 40,000 Total operating expenses 1,313,000 1,043,000 Operating income Other income (expense) 362,000 529,000 Interest revenue 157,000 143,000 Interest expense (214,000) (214,000) Total other income, net (57,000) (71,000) Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations 0 0 Loss from operations of discontinued component Income tax benefit Income (loss) on discontinued operations Net income Earnings per share: Income from continuing operations 0 0 0$ $ 0 Income on discontinued operations Net income