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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

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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 $4,550,000 2,890,000 830,000 390,000 153,000 206,000 60,000 2020 $3,650,000 2,030,000 705,000 332,000 143,000 206,000 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 $60,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: Sales revenue Cont of goods sold Administrative expense Selling expense Operating income before taxes 1/1/2021-9/30/2021 $430,000 (305,000) (53,000) (23,000) $ 49,000 2020 $530,000 (338,000) (43,000) (23,000) $ 126,000 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 $53,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $43,000 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 400,000 shares of outstanding common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) Comparative Income Statements For the Years Ended December 31 2021 2020 0 0 Sales revenue Cost of goods sold Gross profit (loss) Operating expenses: Administrative expense Selling expense 0 1 Total operating expenses Operating income Other income (expense): Interest revenue 0 0 0 0 0 Total other income, net Income from continuing operations before income taxes 0 0 Income from continuing operations Discontinued operations: Income (loss) on discontinued operations Net income Earnings per share: 0 0 0 0 $ Net income

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