Selected Information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends orn December 31) Sales Cost of goods sold Administrative expense Selling expenses Interest revenue Interest expense Loss on sale of assets of discontinued component $5,150,000 $4,250,000 3, 010, 000 2,150, 000 825,000 510,000 462, 000 155,000 230,000230, 000 4.16 points 950, 000 165,000 110,000 Print On July 1, 2018, the company adopted a plan to discontinue a division that qualifes as a component of an entity as defined by GAAP The assets of the component were sold on September 30, 2018, for $110,000 less than thelr book value. Results of operations for the component (includedin the above account balances) were as follows 650,000 S50,000 (365, 000) Sales Cost of goods sold Administrative expenses Selling expenses Operating income before taxes (410, 000) (65, 000) (35, 000) (55, 000) (45,000) s 85,000 140,000 In addition to the account balances above, several events occurred during 2018 that have notyet been reflected in the above accounts 1. A fire caused $65,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event 2 Inventory that had cost s55.000 had become obsolete because a competitor introduced a better product. The inventory was sold 3. Income taxes have not yet been recorded as scrap for $6.000. K Prev 12 of 24 Next >