Chris and karen are married and own a three- bedroom home in a large midwestern city. their son, christian, attends college away from home and lives in a fraternity house. their daughter, kelly, is a senior in high school. chris is an accountant who works for a local accounting firm. karen is a marketing analyst and is often away from home several days at a time. kelly earns extra cash by babysitting on a regular basis. the family's home contains household furniture, personal property, a computer that chris uses to prepare business tax returns on weekends, and a laptop computer that karen uses while traveling. the swifts also own three cars. christian drives a 2004 ford; chris drives a 2009 pontiac for both business and personal use; and karen drives a 2011 toyota and a rental car when she is traveling. although the swifts have owned their home for several years, they are considering moving because of the recent increase in violent crime in their neighborhood. a. describe briefly the steps in the personal risk management process. b. identify the major pure risks or pure loss exposures to which chris and karen are exposed with respect to each of the following: 1. personal loss exposures2. property loss exposures3. liability loss exposuresc. with respect to each of the loss exposures mentioned above, identify an appropriate personal risk management technique that could be used to treat the exposure.

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.)