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 $4,550,000 2,890,000 830,000 390,000 153,000 206,000 60,000 2020 $3,650,000 2,030,000 705,000 332,000 143,000 206,000 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 $60,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: Sales revenue Cont of goods sold Administrative expense Selling expense Operating income before taxes 1/1/2021-9/30/2021 $430,000 (305,000) (53,000) (23,000) $ 49,000 2020 $530,000 (338,000) (43,000) (23,000) $ 126,000 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 $53,000 in uninsured damages to the main office building. The fire was considered to be an unusual event. 2. Inventory that had cost $43,000 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.