Problem 4-1 Comparative income statements; multiple-step format [LO4-1, 4-3, 4-4, 4-51 Selected Information about Income statement accounts for the Reed Company Is presented below (the company's fiscal year ends on December 31): 2818 2817 Sales Cost of goods sold Administrative expenses Selling expenses Interest revenue Interest expense Loss on sale of assets of discontinued component $4,85e,9 $3,958,ee 2,95e,98 2,998,99e 765,8e8 482,99e 149,99e 218,998 458,98e 159,99e 218,9e0 86,90e On July 1, 2018, 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, 2018, for $86,000 less than thelr book value Results of operations for the component (included In the above account balances) were as follows 1/1/18-9/30/18 $ 498,80e 2017 $598,80e Sales Cost of goods sold Administrative expenses Selling expenses Operating income before taxes 335,888) (59,880) (29,988) 39,888) (374,90e) (49,880) $67,9ee $ 128,9e In addition to the account balances above, several events occurred during 2018 that have notyet been reflected In the above accounts: 1. A fire caused $59,000 In uninsured damages to the maln office bullding. The fire was considered to be an Infrequent but not unusual event 2. Inventory that had cost $49,000 had become obsolete because a competitor Introduced a better product. The Inventory was sold as scrap for $9,000 3. Income taxes have not yet been recorded. Required Prepare a multiple-step Income statement for the Reed Company for 2018, showing 2017 Information In comparative format. Including income taxes computed at 30% and EPS disclosures assuming 700,000 shares of common stock. (Amounts to be deducted should be Indicated with a minus sign. Round EPS answers to 2 decimal places.)