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 $5,400,000 $4,500,000 3,060,000 2,200,000 1,000,000 875,000 560,000 502,000 170,000 160,000 240,000 240,000 128,000 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 $128,000 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 $ 600,000 (390,000) (70,000) (40,000) $ 100,000 2020 $ 700,000 (440,000) (60,000) (40,000) $ 160,000 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 $70,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $60,000 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. 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 800,000 shares of outstanding common stock. (Amounts to 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 2020 2021 $ 5,400,000 Sales revenue Cost of goods sold Gross profit (loss) Onerating exnenses 5,400,000 0 REED COMPANY Comparative Income Statements For the Years Ended December 31 2021 2020 $ 5,400,000 5,400,000 0 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 0 5,400,000 0 0 0 0 0 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 Earnings per share: Income from continuing operations Income on discontinued operations Net income 0 0 $ 0 $ 0