Ronald armstead worked for first american bank as a courier. his duties included making deliveries between the bank’s branches in washington, dc. armstead parked the bank’s station wagon near the entrance of one branch in violation of a sign saying: "no parking rush hour zone." in the rear luggage section of the station wagon were four locked bank dispatch bags, containing checks and other valuable documents. armstead had received tickets for illegal parking at this spot on five occasions. shortly after armstead entered the bank, a tow truck arrived and its operator prepared to tow the station wagon. transportation management, inc., operated the towing service on behalf of the district of columbia. armstead ran out to the vehicle and told the tow truck operator that he was prepared to drive the vehicle away immediately. but the operator drove away with the station wagon in tow. one and one-half hours later, a bank employee paid for the car’s release, but one dispatch bag, containing documents worth $107,000, was missing. first american sued transportation management and the district of columbia. the defendants sought summary judgment, claiming they could not be liable. were they correct?

Selected information about income statement accounts for the reed company is presented below (the company's fiscal year ends on december 31): 2018 2017sales $ 4,400,000 $ 3,500,000cost of goods sold 2,860,000 2,000,000administrative expenses 800,000 675,000selling expenses 360,000 312,000interest revenue 150,000 140,000interest expense 200,000 200,000loss on sale of assets of discontinued component 50,000 —on july 1, 2018, 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, 2018, for $50,000 less than their book value. results of operations for the component (included in the above account balances) were as follows: 1/1/18-9/30/18 2017 sales $ 400,000 $ 500,000 cost of goods sold (290,000 ) (320,000 )administrative expenses (50,000 ) (40,000 )selling expenses (20,000 ) (30,000 )operating income before taxes $ 40,000 $ 110,000 in addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: a fire caused $50,000 in uninsured damages to the main office building. the fire was considered to be an infrequent but not unusual event.inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. the inventory was sold as scrap for $5,000.income taxes have not yet been recorded.required: prepare a multiple-step income statement for the reed company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and eps disclosures assuming 300,000 shares of common stock. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)