First niles financial, inc., is a company whose sole business is to own and operate a bank, home federal savings and loan association of niles, ohio. first niles's directors included bank officers william stephens, daniel csontos, and lawrence safarek; james kramer, president of an air-conditioning company that serviced the bank; and ralph zuzolo, whose law firm served the bank and whose title company participated in most of its real estate deals. first niles's board put the bank up for sale and received three bids. farmers national bank corp. stated that it would not retain the board. cortland bancorp indicated that it would terminate the directors but consider them for future service. first financial corp. said nothing about the directors. the board did not pursue farmers' offer, failed to timely respond to cortland's request, and rejected first financial's bid. leonard gantler and other first niles shareholders filed a suit in a delaware state court against stephens and the others. what duties do directors and officers owe to a corporation and its shareholders? how might those duties have been breached here?

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.)