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 2020 $4,750,000 $3,850,000 2,930,000 2,070,000 870,000 745,000 430,000 372,000 157,000 147,000 214,000 214,000 76,000 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 $76,000 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 1/1/2021-9/30/20211 $470,000 (325,000) (57,000) (27,000) 2020 $ 570,000 (362,000) (47,000) (27,000) Operating income before taxes i $ 61,000 $ 134,000 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 $57,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $47,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $7,000. 3. Income taxes have not yet been recorded.