Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 2021 $4,400,000 $3,500, 2,860,000 2,000,00 800,000 675,000 360,000 302.00 150,000 140,000 200,000 2ee, 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. 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: Sales revenue Cost of goods sola Administrative expense Selling expense Operating income before taxes 1/1/2021-9230/2021 $ 400,000 (290,000) (50,000) (20.00 $ 40,000 2020 $ 500,000 (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 Afire 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 REED COMPANY Comparative Income Statements For the Years Ended December 31 Sales revenue Cost of goods sold Gross profit (loss) Operating expenses 2021 2020 $ 400,000 $3,000,000 2,570,000 1,680,000 (2,170,000) 1,320,000 0 0 Total operating expenses Operating income Other income (expense) (2.170.000) 1,320,000 Total other income, net Income from continuing operations before income taxes 0 Income from continuing operations Discontinued operations 0 0 0 0 Income (loss) on discontinued operations Net income Earnings per share: $ 0 $ 0 Net income