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 15. In addition to the account balances above, several events occurred during 2021 that have not yet been reflected in the above 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 Gross profit (loss) Operating expenses: Total operating expenses Operating income Other income (expense): Total other income, net Income from continuing operations before income taxes Income from continuing operations Discontinued operations: Income (loss) on discontinued operations Net income Earnings per share: Net income