On july 1, 20x2, alan enterprises merged with cherry corporation through an exchange of stock and the subsequent liquidation of cherry. alan issued 206,000 shares of its stock to effect the combination. the book values of cherry's assets and liabilities were equal to their fair values at the date of combination, and the value of the shares exchanged was equal to cherry's book value. information relating to income for the companies is as follows: 20x1 jan. 1–june 30, 20x2 july 1–dec. 31, 20x2 net income: alan enterprises $ 4,610,000 $ 2,570,000 $ 3,588,000 cherry corporation 1,320,000 802,000 — alan enterprises had 1,030,000 shares of stock outstanding prior to the combination. remember that when calculating earnings per share (eps) for the year of the combination, the shares issued in the combination were not outstanding for the entire year. required: compute the net income and earnings-per-share amounts that would be reported in alan's 20x2 comparative income statements for both 20x2 and 20x1. (round earnings per share to 2 decimal places.)

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.