P4-1 Comparative income statements, multiple-step format L04-1, 104-3, 104-4, L045 @ Selected information about income statement accounts for the Reed Company is presented below the company's fiscal year ends on December 31). 2021 2020 Sales revenue $4,400,000 $3,500,000 Cost of goods sold 2.860,000 2.000.000 Administrative expense 800,000 675,000 Selling expense 360.000 302.000 Interest revenue 150.000 140,000 Interest expense 200.000 200.000 Loss on sale of assets of discontinued component 48.000 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. Page 219 The assets of the component were sold on September 30, 2021, for $48.000 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 $ 500.000 Cost of goods sold Administrative expense Selling expense Operating income before taxes $400.000 (290.000) (50.000) (20.000) S 40.000 (320,000) (40.000) (20.000) $ 120.000 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 $50.000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $40.000 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