Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31) Sales revenue Cost of goods sold. Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued composent Sales revenue Cost of goods sold Administrative expense Selling expense Operating income before taxes On July 1, 2024, 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, 2024, for $56,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: Gross proft (loss) Operating expenses. Total operating expenses 2024 2023 $4,500,000 $3,600,000 2,000,000 2,020,000 1/1/2024-9/30/2024 $ 420,000 (300,000) (52,000) (22,000) $ 46,000 Operating income Other income (expense) In addition to the account balances above, several events occurred during 2024 that have not yet been reflected in the above accounts: 820,000 380,000 152,000 204,000 56,000 1. A fire caused $52,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $42,000 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. REED COMPANY Comparative Income Statements For the Years Ended December 31 otal ether income, net Income frons continuing operations before income taxes Required: Prepare a multiple-step income statement for the Reed Company for 2024, showing 2023 information in comparative format, including income taxes computed at 25% and EPS disclosures assuming 300,000 shares of outstanding common stock Note: Round EPS answers to 2 decimal places. 2024 695,000 322,000 142,000 204,000 0 0 2023 $ $20,000 (332,000) (42,000) (22,000) $ 124,000 0 2023 0 0