On July 1 , 2 0X2, Alan Enterprises merged with Cherry Corporation through an exchange of stock and subsequent liquidation of Cherry. Alan issued 200,000 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 the book value of Cherry Corporation. Information relating to income for the companies is as follows:

Alan Enterprises had 1 .000.000 shares of stock outstanding prior to the combination.
Required Compute the net income and eamings-per-share amounts that would be reported in Alan's 20X2 comparative income statements for both 20X2 and 20X1, assuming the business combination is treated as a purchase.

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Net Income: 20X1 January 1-June 30, 20X2 July 1-December 31, 20X2 Alan Enterprises $4.460,000 Cherry Corporation 1,300,000 $2.500.000 692.000 $3.528.000