Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 2016 Sales Cost of goods sold Administrative expenses Selling expenses Interest revenue Interest expense Loss on sale of assets of discontinued component $4,950,000 $4,050,000 2,970,000 2,110,000 910,000 785,000 470,000 422,000 161,000 151,000 222,000 222,000 94,000 On July 1, 2016, 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, 2016, for $94,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/16-9/30/16 2015 Sales Cost of goods sold Administrative expenses Selling expenses $ 510,000 $ 610,000 (345,000) (386,000) (61,000) (51,000) (31,000) (41,000) Operating income before taxes 73,000 $ 132,000 In addition to the account balances above, several events occurred during 2016 that have not yet been reflected in the above accounts 1. A fire caused $61,000 in uninsured damages to the main office building The fire was considered to be an infrequent but not unusual event 2. Inventory that had cost $51,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $5,000 3. Income taxes have not yet been recorded Required: Prepare a multiple-step income statement for the Reed Company for 2016, showing 2015 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 400,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)