Wk 4 - Apply: Summative Assessment.. Saved Help Save & Exit Submit 1 Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 33.33 points Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 2021 2020 $5,350,000 $4,450,000 3,050,000 2,190,000 990,000 865,000 550,000 492,000 169,000 159,000 238,000 238,000 124,000 eBook References 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 $124,000 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 $ 590,000 (385, 000) (69,000) (39,000) $ 97,000 2020 $ 690,000 (434,000) (59,000) (39,000) $ 158,000 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 $69,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $59,000 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. Wk 4 - Apply: Summative Assessment... Saved Help Save & Exit Submit 1 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 700,000 shares of outstanding common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) 33.33 points REED COMPANY Comparative Income Statements For the Years Ended December 31 2021 2020 eBook References 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 WK 4 - Apply: Summative Assessment... A Saved Help Save & Exit Submit 1 Total operating expenses Operating income Other income (expense): 33.33 points eBook Total other income, net Income from continuing operations before income taxes References Income from continuing operations Discontinued operations: Income (loss) on discontinued operations Net income Earnings per share: Net income