Harrison Company, Inc. began operations on January 1, 2020, and applied the LIFO method for inventory valuation. On June 10, 2021, Harrison adopted the FIFO method of accounting for inventory. Additional information is as follows: The LIFO method was applied during the first quarter of 2021 and the FIFO method was applied during the second quarter of 2021 in computing income, above. Harrison's effective income tax rate is 40%. Harrison has 500,000 shares of common stock outstanding at all times.Prepare a schedule showing the calculation of net income and earnings per share to be reported by Harrison for the three-month period and the six-month period ended June 30, 2020 and 2021.

Question

Harrison Company, Inc. began operations on January 1, 2020, and applied the LIFO method for inventory valuation. On June 10, 2021, Harrison adopted the FIFO method of accounting for inventory. Additional information is as follows:  The LIFO method was applied during the first quarter of 2021 and the FIFO method was applied during the second quarter of 2021 in computing income, above. Harrison's effective income tax rate is 40%. Harrison has 500,000 shares of common stock outstanding at all times.Prepare a schedule showing the calculation of net income and earnings per share to be reported by Harrison for the three-month period and the six-month period ended June 30, 2020 and 2021.

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The Answer of Harrison Company, Inc. began operations on January 1, 2020, and applied the LIFO method for inventory valuation. On June 10, 2021, Harrison adopted the FIFO method of accounting for inventory. Additional information is as follows:  The LIFO method was applied during the first quarter of 2021 and the FIFO method was applied during the second quarter of 2021 in computing income, above. Harrison's effective income tax rate is 40%. Harrison has 500,000 shares of common stock outstanding at all times.Prepare a schedule showing the calculation of net income and earnings per share to be reported by Harrison for the three-month period and the six-month period ended June 30, 2020 and 2021.