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$\backslash$table$[[,2$:$\text{'}24,2625],[$Sales revenue,$$4,450,900,$$$3,550,000],[$Cost of goods sold,$2,870,090,2,010,008],[$Adninistrative expense,$810,000,685,902],[$Selling expense,$370,990,312,002],[$Interest revenue,$151,000,141,002],[$Interest expense,$202,900,292,008],[$Loss on sale of assets of discontinued component,

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 $$52,000$ less than thelr book value. Results of operations for the component $($Included in the above account balances$)$ were as follows:

$\backslash$table$[[,1/1/2024-9/30/2024,2023],[$Sales revenue,$$410,000,$$$510,000],[$Cost of goods sold,$(295,000),(326,000)],[$Adninistrative expense,$(51,000),(41,000)],[$Selling expense,$(21,000),(21,000)],[$Operating Incone before taxes,$$43,000,$$$122,000]]$

In addition to the account balances above, several events occurred during $2024$ that have not yet been reflected in the above accounts:

A fire caused $$51,000$ in uninsured damages to the maln office bullding. The fire was considered to be an unusual event.

$2$ Inventory that had cost $$41,000$ had become obsolete because a competitor Introduced a better product. The Inventory was written down to its scrap value of $$5,000.$

Income taxes have not yet been recorded.

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 $400,000$ shares of outstanding common stock.

Note: Round EPS answers to $2$ decimal places.

$\backslash$table$[[$REED COMPANY$],[$Comparative Income Statements$],[$For the Years Ended December $31],[,2024,2023],[,,],[$Gross profit $($loss$)],[],[$Operating expenses:$],[,,],[,,],[,,],[,,],[,,],[$Total o$,,],[$Operating income$],[$Other income $($expense$)$:$],[,,],[$Total other income, net$],[$Income from continuing operations before income taxes$],[,,],[$Income from continuing operations$],[$Discontinued operations:$],[$Income $($loss$)$ from operations of discontinued component$],[,,],[$Income $($loss$)$ on discontinued operations$],[$Net income$],[$Earnings per share:$],[,,],[,,],[$Net income,,$]]$

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