December $31)$: $\backslash$table$[[$REED COMPANY$],[$Comparative Income Statements$],[$For the Years Ended December $31],[,,2024,,2023],[$Sales revenue,$$,4,640,000,$S$,3,640,000],[$Cost of goods sold,,$(2,650,000),,1,744,000],[$Gross proft: $($loss$),,1,990,000,,1,896,000],[$Operating expenses:$],[$Administrative expense,,$(894,000),,(779,000)],[$Seling expense,,$(484,000),,(426,000)],[$Loss on bulding $($fire damage$),,(66,000),,0],[$Loss on inventory write$-$down,,$(49,000),,0],[,,,,],[$Total operating expenses,,$(1,493,000),,(1,205,000)],[$Operating income,,$497,000,,691,000],[$Other income $($expense$)$:$],[$Interest revenue,,$168,000,,156,000],[$Interest expense,,$(232,000),,(232,000)],[$Total other income, net,,$(66,000),,(76,000)],[$Income from continuing operations before income taxes$],[$Income tax expense$],[$Income from continuing operations,,$0,,0],[$Discontinued operations:$],[$Income $($loss$)$ from operations of discontinued component$],[$Income tax benefit $($expense$)],[$Income $($loss$)$ on discontinued operations,,$0,,0],[$Net income,$$,0,5,0],[$Earnings per share:$],[$Income from continuing operations$],[$Discontinued operations$],[$Net income,,,,$]]$

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 $$112,000$ less than thelr 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:

A fire caused $$66,000$ in uninsured damages to the maln office bulding. The fire was considered to be an unusual event.

Inventory that had cost $$56,000$ had become obsolete because a competitor Introduced a better product. The Inventory was

written down to its scrap value of $$7,000.$

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 $500,000$ shares of outstanding common stock.

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