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	$	4,650,000	$	3,750,000
Cost of goods sold		2,910,000		2,050,000
Administrative expense		850,000		725,000
Selling expense		410,000		352,000
Interest revenue		155,000		145,000
Interest expense		210,000		210,000
Loss on sale of assets of discontinued component		68,000

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 $68,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:

	1/1/20219/30/2021						2020
Sales revenue		$	450,000				$	550,000
Cost of goods sold			(315,000	)				(350,000	)
Administrative expense			(55,000	)				(45,000	)
Selling expense			(25,000	)				(25,000	)
Operating income before taxes		$	55,000				$	130,000

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 $55,000 in uninsured damages to the main office building. The fire was considered to be an unusual event.
2. Inventory that had cost $45,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $8,000.
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
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:
Income (loss) on discontinued operations
Net income
Earnings per share:
Net income