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 54,700,000 $3,800,000 2.920,000 2,068,000 860,000 735, cee 420,000 362,000 156.000 146,000 212,00 212,0 72,000 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 $72,000 less than their book value. Results of operations for the component (included in the above account balances) were as follow 1/1/20219730/2021 2020 5460,000 $ 560,000 Cost of goods sold 320,000) (356,000) Administrative expense (56.000) (46,880) Selling expense (26,000) (26.000 Operating Income before taxes $ 58,00 5 132,000 Sales revenue - 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 $56,000 in uninsured damages to the main office building. The fire was considered to be an unusual event 2. Inventory that had cost $46,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $6,000 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.) REED COMPANY Comparative Income Statements For the Years Ended December 31 2021 2020 $ 4,240,000 $3,240,000 2,600,000 1,704,000 1,640,000 1,536,000 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 689,000 804,000 394,000 56,000 40,000 Total operating expenses Operating income Other income (expense): 1,294.000 346,000 689,000 847,000 --- 346,000 847.000 Operating income Other income (expense): 0 Total other income, net Income from continuing operations before income taxes 0 Income from continuing operations Discontinued operations: 0 0 Income (loss) on discontinued operations Net income Earnings per share: $ 0 $ 0 Net income