Refer to RE6-1. Grider Company also has Division C. For the current year, Division C had revenues of $25,000, profit (pretax) of $8,200, and year-end assets of $46,000. Determine whether Division C 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.