Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):

	2013			2012
Sales	$	5,100,000		$	4,200,000
Cost of goods sold		3,000,000			2,140,000
Administrative expenses		940,000			815,000
Selling expenses		500,000			452,000
Interest revenue		164,000			154,000
Interest expense		228,000			228,000
Loss on sale of assets of discontinued component		106,000			—

On July 1, 2013, 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, 2013, for $106,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:

	1/1/13-9/30/13			2012
Sales	$	540,000		$	640,000
Cost of goods sold		(360,000	)		(404,000	)
Administrative expenses		(64,000	)		(54,000	)
Selling expenses		(34,000	)		(44,000	)
Operating income before taxes	$	82,000		$	138,000

In addition to the account balances above, several events occurred during 2013 that have not yet been reflected in the above accounts:
1.	A fire caused $64,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event.
2.	An earthquake caused $114,000 in property damage to one of Reed’s factories. The amount of the loss is material and the event is considered unusual and infrequent.
3.	Inventory that had cost $54,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scr ap for $5,000.
4.	Income taxes have not yet been accrued.

Required:

Prepare a multiple-step income statement for the Reed Company for 2013, showing 2012 information in a comparative format, including income taxes computed at 40% and EPS disclosures assuming 800,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)