Selected information about income statement accounts for the Reed Company is presented below the company's fiscal year ends on 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 $4,800,000 2,940,000 880,000 440,000 158,000 216,000 80,000 2020 $3,900,000 2,080,000 755,000 382,000 148,000 216,000 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 $80,000 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 $ 480,000 (330,000) (58,000) (28,000) $ 64,000 2020 $ 580,000 (368,000) (48,000) (28,000) $ 136,000 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 $58,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $48,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $8,000. 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 500,000 shares of outstanding common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) Answer is not complete. REED COMPANY Comparative Income Statements For the Years Ended December 31 2021 $ 4,320,000 2,610,000 1,710,000 2020 $3,320,000 1,712,000 1,608,000 Sales revenue Cost of goods sold Gross profit (loss) Operating expenses: Administrative expense Selling expense Loss on building (fire damage) Loss on inventory write-down 707,000 354,000 822,000 412,000 58,000 40,000 1,332,000 378,000 1,061,000 547,000 Total operating expenses Operating income Other income (expense): Interest revenue Interest expense Total other income, 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 158,000 (216,000) (58,000) 320,000 128,000 $ 192,000 148,000 (216,000) (68,000) 479,000 191,600 287,400 x (38,400) (38,400) 153,600 $ S 287,400 Earnings per share: Income from continuing operations Income on discontinued operations (37,600.00) 154,400.00 206,400.00 $ 89,600.00 X 377,000.00 377,000.00 Net income