(This problem should not be attempted until Problem 21 has been done.) Assume the same data for the Harrison Corporation as given in the previous problem. In addition, assume the following:

a Prepare an analysis similar to that in Exhibit 8.4 for 1979 , identifying operating margins, realized holding gains and losses, and unrealized holding gains and losses for the FIFO, LIFO, and weighted-average cost-flow assumptions.
b Repeat part a for 1980 .
c Demonstrate that over the 2-year period, the economic profits of Harrison Corporation are independent of the cost-flow assumption.

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Selling Price per Unit: 1979 $.25 1980 .30 Average Current Replacement Cost: 1979 1980 $.15 .20 29 Current Replacement Cost: December 31, 1979 $.17 December 31, 1980 22