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Selected information about income statement accounts for the Reed Company is presented below (the company's...

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Accounting

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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 31): 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 $76,000 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 2024 that have not yet been reflected in the above accounts: 1. A fire caused $57,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $47,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $7,000. 3. Income taxes have not yet been recorded. Required: Prepare a multiple-step income statement for the Reed Company for 2024, showing 2023 information in crtmparative format, including income taxes computed at 25% and EPS disclosures assuming 400,000 shares of outstanding common stock. Note: Round EPS answers to 2 decimal places

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