Selected information about income statement accounts for the Reed Company is presented below (the company's...
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Selected information about income statement accounts for the Reed Company is presented below the company's fiscal year ends on December : On July 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 for $ less than their book value. Results of operations for the component included in the above account balances were as follows: In addition to the account balances above, several events occurred during that have not yet been reflected in the above accounts: A fire caused $ in uninsured damages to the main office building. The fire was considered to be an unusual event. Inventory that had cost $ had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $ Income taxes have not yet been recorded. Required: Prepare a multiplestep income statement for the Reed Company for showing information in comparative format, including income taxes computed at and EPS disclosures assuming shares of outstanding common stock. Note: Round EPS answers to decimal places. 
Selected information about income statement accounts for the Reed Company is presented below the company's fiscal year ends on
December :
On July 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 for $ less than their book value. Results of operations for the
component included in the above account balances were as follows:
In addition to the account balances above, several events occurred during that have not yet been reflected in the above
accounts:
A fire caused $ in uninsured damages to the main office building. The fire was considered to be an unusual event.
Inventory that had cost $ had become obsolete because a competitor introduced a better product. The inventory was
written down to its scrap value of $
Income taxes have not yet been recorded.
Required:
Prepare a multiplestep income statement for the Reed Company for showing information in comparative format, including
income taxes computed at and EPS disclosures assuming shares of outstanding common stock.
Note: Round EPS answers to decimal places.
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