Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 2021 2020 $4,700,000 $3,800,000 2,920,000 2,060,000 860,000 735,000 420, eee 362, 156,000 146,000 212,080 212,000 72,000 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 $72,000 less than their book value Results of operations for the component (included in the above account balances) were as follows 1/1/2021-9/30/2021 2020 Sales revenue $ 460,000 $ 560,000 Cost of goods sold (320,000) (356,000) Administrative expense (56,000 (46,000) Selling expense (26,000 (26.000 Operating Incone before taxes $ 58,090 $ 132,000 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 $56.000 in uninsured damages to the main office building The fire was considered to be an unusual event 2 Inventory that had cost $46,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $6.000 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) 2020 Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 2021 $4,700,000 $3,800,000 2,920,000 2,060,000 860,000 735,000 420,000 362, e80 156,000 146,000 212,000 212,000 72,000 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 $72,000 less than their book value. Results of operations for the component included in the above account balances) were as follows: 1/1/2021-9/30/2021 2020 Sales revenue $ 460,000 $ 560,000 Cost of goods sold (320,000) (356,000) Administrative expense (56,000) (46,000) Selling expense (26,000) (26.000) Operating income before taxes 5 $8,000 $ 132,000 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 $56,000 in uninsored domages to the main office building The fire was considered to be an unusual event 2. Inventory that had cost $46,000 had become obsolete because a competitor introduced a better product. The inventory wos written down to its scrap value of $6,000 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% ond 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.)
