Answer Happy

Volata Company began operations on January 1, 2019. In the
second quarter of 2020, it adopted the FIFO method of inventory
valuation. In the past, it used the LIFO method. The company’s
interim income statements as originally reported under the LIFO
method follow: 2019 2020 1stQ 2ndQ 3rdQ 4thQ 1stQ Sales $ 30,000 $
32,000 $ 34,000 $ 36,000 $ 38,000 Cost of goods sold (LIFO) 6,000
7,000 7,800 9,000 10,500 Operating expenses 4,000 4,200 4,600 5,000
5,200 Income before income taxes $ 20,000 $ 20,800 $ 21,600 $
22,000 $ 22,300 Income taxes (25%) 5,000 5,200 5,400 5,500 5,575
Net income $ 15,000 $ 15,600 $ 16,200 $ 16,500 $ 16,725 If the FIFO
method had been used since the company began operations, cost of
goods sold in each of the previous quarters would have been as
follows: 2019 2020 1stQ 2ndQ 3rdQ 4thQ 1stQ Cost of goods sold
(FIFO) $ 5,800 $ 6,600 $ 7,200 $ 8,000 $ 9,400 Sales for the second
quarter of 2020 are $40,000, cost of goods sold under the FIFO
method is $11,000, and operating expenses are $5,400. The effective
tax rate remains 25 percent. Volata Company has 1,000 shares of
common stock outstanding. Prepare a schedule showing the
calculation of net income and earnings per share that Volata
reports for the three-month period and the six-month period ended
June 30, 2020