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 $52,000 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 $51,000 in uninsured damages to the main 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. 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 comparative format, including income taxes computed of 25% and EPS disclosures assuming 400,000 shares of outstanding common stock. Note: Round EPS answers to 2 decimal places. Total operating expenses.

1. 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 $52,000 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 $51,000 in uninsured damages to
the main 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. 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 comparative format, including income taxes computed of 25% and
EPS disclosures assuming 400,000 shares of outstanding common stock. Note: Round EPS
answers to 2 decimal places.
Total operating expenses