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 $ 5,200,000 $ 4,300,000 3,020,000 2,160,000 960,000 835,000 520,000 462,000 166,000 156,000 232,000 232,000 112,000 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 $112.000 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 $ 560,000 (370,000) (66,000) (36,000) $ 88,000 2020 $ 660,000 (416,000) (56, 000) (36,000) $ 152,000 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 $66,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $56,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $7,000. 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.) REED COMPANY Comparative Income Statements For the Years Ended December 31 2021 2020 $ 4,640,000 $3,640,000 2,650,000 1.744,000 1,990,000 1,896,000 Sales revenue Cost of goods sold Gross profit (loss) Operating expenses: Administrative expense Selling expense Loss on building (fire damage) Loss on inventory write-down 779,000 426,000 894,000 484,000 66,000 49,000 Total operating expenses Operating income Other income (expense): 1.493.000 497,000 1,205,000 691,000 Interest revenue Interest expense Total other income, net Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Income from operations of discontinued component 166,000 (232,000) (66,000) 431,000 107,750 323,250 156,000 (232,000) (76,000) 615,000 153.750 461,250 (24,000) 152,000 (24,000) 152.000 $ 299,250 $ 613,250 Income (loss) on discontinued operations Net income Earnings per share: Income from continuing operations Income on discontinued operations $ 0.92 0.65 (0.04) 0.61 Net Income $