REED COMPANY Comparative Income Statement For the Years Ended December produs Selected com to about income statement accou calowed on December 31 Company is presented below the Con el goed Lomono s con corpore On 1.2021, e company adopted a plant a con el que as a component of an defined by GAP The acts of the component were sold on Sember 30, 2021, for 64.000 than the book Results of operations for the component included in the ove cu banc) Senge Operating income before in account balance b era events during 2021 ve yol be reded in the above acco 1 Abend 150 000 m e dans to the man ice buding There was considered to be an cost 4 00 d become because a comp r oduced a better product The very was written on to p of $9.000 3 Income we have not yet been recorded Pre compre shares t ep met Red Corpan 2021, chang 2020 ndering income a com a nda de standing c o ck mounts to be deducted show dated a 700.000 ssign Award: 10.00 points Selected formation 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 Seling expense Interest revenue Interest expense Loss on sale of assets of discontinu 2021 54,850,000 950 000 190.000 450 000 2020 $3,950.000 2.090 000 765.000 392.000 149.000 215.000 159.000 216.000 84000 On July 1, 2021, the company adopted a plan to discontinue a division that qualities as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2021, for $84.000 than the book Value Rosults of operations for the component included in the above account balances) were as follows: Sales revenue Cost of goods sold Administrative expens Seling expense Operating income before taxes 121/2021-9/30/2021 5 490,000 (335.000 (5000) 29 000 567 000 2020 S 590.000 (374,000) (49.000) 29.000 5138.000 In addition to the account balances above several events occurred during 2021 that have not yet been reflected in the above accounts 1. Afre caused 550,000 in insured damage to the main office building The fire was considered to be an unusual event, 2 Inventory that had cost 549.000 had become obsolete because a competitor introduced a better product The inventory was written down to its scrap value of $9.000 3. Income taxes have not yet been recorded Required: Prepare a muritepincome stanement for the Reed Company for 2021. showing 2020 Information in comparative format, inciding income taxes computed at 25 and EPS disclosures assuming 700.000 shares of outstanding common stock (Amounts to be deducted should be indicated with a minus sign Round EPS answers to 2 decimal places.) 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 2020 $4,850,000 $3,950,000 2,950,000 2,990,00 890,880 765, 080 450,000 392, eee 159,800 149, eee 218, mee 218,000 84, eee 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 $84.000 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 $ 490, eee (335, eee) (59, eee) (29,880) $ 67,800 2020 $ 590, eee (374,00) (49,680) 29.080) $ 138,000 In addition to the account balances above, several events occurred during 2021 that have not yet been reflected in the above Occounts: 1. A fire caused $59,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $49,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $9,000. 3. Income taxes have not yet been recorded. Required Prepare a multiple step income statement for the Reed Company for 20210 showing 2020 information in comparative formal, including income taxes computed at 25% and EPS disclosures assuming 700.000 shares of outstanding common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)