Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): On July 1, 2013, 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, 2013, for $122,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: In addition to the account balances above, several events occurred during 2013 that have not yet been reflected in the above accounts: Afire caused $68,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event. An earthquake caused $118,000 in property damage to one of Reed's factories. The amount of the loss is material and the event is considered unusual and infrequent. Inventory that had cost $58,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $5,000. Income taxes have not yet been accrued. Prepare a multiple-step income statement for the Reed Company for 2013, showing 2012 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 600,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)