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Quiz_6_solutions_part_B - operating segments that incurred...

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Segmental: (7 points) A Revenue Test A B C D E Combined Sales to Nonaffiliates $57,000 $120,000 $760,000 $50,000 $43,000 $1,030,000 Intersegment Sales 0 0 120,000 0 40,000 160,000 Total Revenue $57,000 $120,000 $880,000 $50,000 $83,000 $1,190,000 Industries B and C have total revenue of 10% or more of combined total revenue. Operating Profit Test Operating Profit (Loss) $12,000 $(25,000) $156,000 $16,000 $6,000 $165,000 Industries B and C are reportable segments because the absolute amounts of the operating profit or loss are at least 10% of the greater of (1) the combined profit of all operating segments that did not incur a loss ($190,000), or (2) the combined loss of all
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Unformatted text preview: operating segments that incurred a loss ($25,000). Identifiable Assets Test Identifiable Assets $50,000 $95,000 $600,000 $98,000 $240,000 $1,083,000 Industries C and E are reportable segments because their identifiable assets are at least 10% of combined identifiable assets Overall 75% Test Sales to Nonaffiliates by Reportable Segments Segments B, C, and E are reportable segments. Total Sales to Nonaffiliates B Geographic disclosure needed (customer disclosure not needed). % 90 000 , 030 , 1 $ 000 , 923 $ =...
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