Need help figuring out the right answers for the comparative income statement.

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 component 2021 2020 $5,350,000 $4,450,000 3,050,000 2,190,000 990,000 865,000 550,000 492,000 169,000 159,000 238,000 238,000 124,000 On July 1, 2021, 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, 2021, for $124,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: Sales revenue Cost of goods sold Administrative expense Selling expense Operating income before taxes 1/1/2021-9/30/2021 $ 590,000 (385,000) (69,000) (39,000 $ 97,000 2020 $ 690,000 (434,000) (59,000) (39,000 $ 158,000 In addition to the account balances above, several events occurred during 2021 that have not yet been reflected in the above accounts: 1. A fire caused $69,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $59,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $6,000. 3. Income taxes have not yet been recorded. Required: Required: Prepare a multiple-step income statement for the Reed Company for 2021, showing 2020 information in comparative format, including income taxes computed at 25% and EPS disclosures assuming 700,000 shares of outstanding common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) REED COMPANY Comparative Income Statements For the Years Ended December 31 Sales revenue . 2021 $ 5,350,000 3,050,000 2,300,000 2020 $ X 4,450,000 2,190,000 X 2,260,000 Cost of goods sold Gross profit (loss) Operating expenses: Selling expense Administrative expense Loss on building (fire damage) Loss on inventory write-down X X 492,000 X 865,000 550,000 990,000 69,000 53,000 1,662,000 Total operating expenses Operating income Other income (expense): 1,357,000 903,000 638,000 Interest revenue Interest expense Total other income, net Income from continuing operations before income taxes 169,000 (238,000) (69,000) 569,000 142,250 159,000 (238,000) (79,000) 824,000 X 206,000 X Income tax expense Income from continuing operations 426.750 618,000 492,000 Operating expenses Selling expense Administrative expense Loss on building (fire damage) Loss on inventory write-down 550,000 X 990,000 69,000 865,000 X 53,000 OO Total operating expenses 1,662,000 1,357,000 Operating income 638,000 903,000 Other income (expense): Interest revenue 169,000 159,000 Interest expense (238,000) (238,000) Total other income, net (69,000) (79,000) Income from continuing operations before income taxes 569,000 X 824,000 X Income tax expense 142,250 X 206,000 X Income from continuing operations 426,750 618,000 Discontinued operations: Loss from operations of discontinued component 124,000 X 158,000 Income tax benefit (31,000) X (39,500) Income (loss) on discontinued operations 93,000 118,500 Net income $ 333,750 $ 736,500 Earnings per share: Income from continuing operations $ 0.61 x $ 0.88 x Income on discontinued operations 0.13 0.17 Net income $ 0.74 X $ 1.05 X *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 00