Refer to RE6-1. Grider Company also has Division B. For the current year, Division B had revenues of $29,000, profit (pretax) of $9,600, and year-end assets of $53,000. Determine whether Division B is a reportable segment. Justify your conclusion.
In RE6-1, Grider Company has several divisions. During the current year, Grider Company had total revenues of $300,000 and total profit (pretax) of $100,000. At the end of the year, Grider had total assets of $520,000. One of Grider’s divisions is Division A. For the current year, Division A had revenues of $20,000, profit (pretax) of $10,200, and year-end assets of $49,000. Determine whether Division A is a reportable segment. Justify your conclusion.