Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 2021 2020 Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue $4,550,000 $3,650, 000 2,890,000 830,00e 390,000 2,030, 000 705,00e 332,000 143,000 Book 153,000 206,000 Interest expense Loss on sale of assets of discontinued component 206,000 Ask 60,000 Print On July 1, 2021, the company adopted a plan to discontinue a division that qualifies as a component of an entity The assets of the component were sold on September 30, 2021, for $60,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: erences as defined by GAAP 1/1/2021-9/30/2021 2820 Sales revenue 430,000 (305,00e) (53,000) (23,000) $530,000 (338,000) (43,000) (23,000) $ 126,000 Cost of goods sold Administrative expense Selling expense Operating income before taxes 49,000 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 $53.000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $43,000 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 Total operating expenses Operating income Other income (expense) Total other income, net income from continuing operations before income taxess Income from continuing operations Discontinued operations: Income (loss) on discontinued operations Net income Earnings per share Net income REED COMPANY Comparative Income Statements For the Years Ended December 31 2021 2020 Gross profit (loss) Operating expenses Total operating expenses Operating income Other income (expense) Total other income, net |Income from continuing operations before income taxes Income from continuing operations Discontinued operations Ok 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 400,000 shares of outstanding common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) nt nces REED COMPANY Comparative Income Statements