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 $4,850,000 $3,950,000 2020 2,950,000 2,090,000 890,000 765,000 450,000 392,000 159,000 149,000 218,000 218,000 84,000 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 $84,000 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 $490,000 (335,000) (59,000) (29,000) 2020 $590,000 (374,000) (49,000) (29,000) $ 67,000 $ 138,000 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 $59,000 in uninsured damages to the main office building. The fire was considered to be an unusual event 2. Inventory that had cost $49,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $9,000. 3. Income taxes have not yet been recorded.