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please complete income statement Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):
please complete income statement
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 2021 $4,600,000 2,900,000 840,000 400,000 154,000 208,000 64,000 2020 $3,700,000 2,040,000 715,000 342,000 144,000 208,000 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 $64,000 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 1/1/2021-9/30/2021 $ 440,000 (310,000) (54,000) (24,000) $ 52,000 2020 $ 540,000 (344,000) (44,000) (24,000) $ 128,000 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 $54.000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $44,000 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 500,000 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 Gross profit (loss) Operating expenses: 0 0 Total operating expenses Operating income Other income (expense): 0 Total other income, net Income from continuing operations before income taxes Income from continuing operations Discontinued operations: 0 1 Income (loss) on discontinued operations Net income Earnings per share: 0 Net incomeStep by Step Solution
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