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Selected information about income statement accounts for theReed Company is presented below (the company's fiscal year ends onDecember 31):

		2021		2020
Sales revenue	$	5,250,000	$	4,350,000
Cost of goods sold		3,030,000		2,170,000
Administrative expense		970,000		845,000
Selling expense		530,000		472,000
Interest revenue		167,000		157,000
Interest expense		234,000		234,000
Loss on sale of assets of discontinued component		116,000		—

On July 1, 2021, the company adopted a plan to discontinue adivision that qualifies as a component of an entity as defined byGAAP. The assets of the component were sold on September 30, 2021,for $116,000 less than their book value. Results of operations forthe component (included in the above account balances)were as follows:

	1/1/2021–9/30/2021						2020
Sales revenue		$	570,000				$	670,000
Cost of goods sold			(375,000	)				(422,000	)
Administrative expense			(67,000	)				(57,000	)
Selling expense			(37,000	)				(37,000	)
Operating income before taxes		$	91,000				$	154,000

In addition to the account balances above, several events occurredduring 2021 that have not yet been reflected in the aboveaccounts:

1. A fire caused $67,000 in uninsured damages to the main officebuilding. The fire was considered to be an unusual event.
2. Inventory that had cost $57,000 had become obsolete because acompetitor introduced a better product. The inventory was writtendown to its scrap value of $8,000.
3. Income taxes have not yet been recorded.

Required:
Prepare a multiple-step income statement for the Reed Company for2021, showing 2020 information in comparative format, includingincome taxes computed at 25% and EPS disclosures assuming 800,000shares of outstanding common stock. (Amounts to be deductedshould be indicated with a minus sign. Round EPS answers to 2decimal places.)