Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31: Sales Cost of goods sold Adninistrative expenses Selling expenses Interest revenue 5,250,000 4,350,000 3,030,000 2,170,000 970,000 845,000 530,000 482,000 167,000157,000 234,000 234,000 118,000 Loss on sale of assets of discontinued component On July 1, 2018, 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, 2018, for $118,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows /18-9/30/1 2017 570,000 670,000 (375,000) Sales Cost of goods sold ndministrative expenses Selling expensen Operating income before taxes (422,000) (57,000) (67,000) (37,00047 000) 91,000 s 144,000 in addition to the account balances above, several events occurred during 2018 that have not yet been refiected in the above accounts: 1. A fire caused $67,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not 2. Inventony that hacst 000 had become obsolete because a cometitor ntroduced a better produc. The inventory wes 3. Income taxes have not yet been recorded. unusual event as scrap for $8,000. Required: Prepare a multiple-step income statement for the Reed Company for income taxes computed at 40% and EPS disclos be Indicated with a minus sign. Round EPS answers to 2 decimal places) 2018, showing 2017 information in comparative format, including ures assuming 800,000 shares of common stock. (Amounts to be deducted should 2018 2017 Sales revenue Cost of goods sold Gross profit (loss) Operating expenses: Administrative Selling Loss from fire damage Loss from write-down of obsolete inventory Total operating expenses Operating income Other income (expense): Interest revenue Interest expense Total other expenses (net) Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Income (loss) from operations of discontinued component Income tax benefit (expense) Income (loss) on discontinued operations Net income Earnings per share: Income from continuing operations Discontinued operations Net income