Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 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 $96,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 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 $62,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $52,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $5,000. 3. Income taxes have not yet been recorded. Required: Prepare a muitipie-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.)