Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends 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 $5,300,000 $4,400,000 3,040,000 2,180,000 980,000 855,000 540,000 482,000 168,000 158,000 236,000 236,000 120,000 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 $120,000 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 $ 580,000 (380,000) (68,000) (38,000) $ 94,000 2020 $ 680,000 (428,000) (58,000) (38,000) $ 156,000 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 $68,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $58,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $5,000. 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 600,000 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 $ 4,720,000 $3,720,000 (2,660,000) (1,752,000) 2,060,000 1,968,000 Sales revenue Cost of goods sold Gross profit (loss) Operating expenses: Administrative expense Selling expense (912,000) (502,000) (797,000) (444,000) (1,414,000) 646,000 (1,241,000) 727,000 Total operating expenses Operating income Other income (expense): Interest revenue 168,000 Interest expense (236,000) (68,000) 158,000 (236,000) (78,000) Total other income, net Income from continuing operations before income taxes Loss on inventory write-down Income from continuing operations Discontinued operations: Income from operations of discontinued component 0 0 0 0 $ 0 $ 0 Income (loss) on discontinued operations Net income Earnings per share: Income from continuing operations Income on discontinued operations Net income