Selected information about income statement accounts for the Reed Company is presented below $($the company's fiscal year ends on

December $31)$:

On July $1,2024,$ 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 $30,2024,$ for $$48,000$ 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 $2024$ that have not yet been reflected in the above

accounts:

A fire caused $$50,000$ in uninsured damages to the main office building. The fire was considered to be an unusual event.

Inventory that had cost $$40,000$ had become obsolete because a competitor introduced a better product. The inventory was

written down to its scrap value of $$5,000.$

Income taxes have not yet been recorded.

Required:

Prepare a multiple$-$step income statement for the Reed Company for $2024,$ showing $2023$ information in comparative format, including

income taxes computed at $25\%$ and EPS disclosures assuming $300,000$ shares of outstanding common stock.

Note: Round EPS answers to $2$ decimal places.