Harrison Company, Inc

question 120

Essay

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.Compute the after-tax effect of Harrison's change in inventory method.

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Definitions:

Continuous

Refers to something happening without interruption or end over a period of time.

Coconscious Subpersonalities

In dissociative identity disorder, these are the different identities or personalities that are aware of and can coexist with one another.

Host Personalities

In the context of Dissociative Identity Disorder, this term refers to the primary or dominant personality among multiple identities within an individual.

Primary Personalities

Fundamental traits or characteristics that form an individual's core personality attributes.