Calvin Inc. has operating segments in five different industries: apparel, building, chemical, furniture, and machinery. Data for the five segments for 20X1 are as follows:

1. The corporate headquarters had general corporate expenses totaling \(\$ 235,000\). For internal reporting purposes, \(\$ 200,000\) of these expenses were allocated to the divisions based on their cost of goods sold. The other corporate expenses are not used in segmental decision making by the chief operating officer.
2. The company has an intercorporate transfer pricing policy that all intersegment sales shall be priced at cost.
3. Corporate headquarters had assets of \(\$ 125,000\) that are not used in segmental decision making by the chief operating officer.
\section*{Required}

a. Prepare a segmental disclosure workpaper for Calvin Inc.

b. Prepare schedules to show which segments are separately reportable.

c. Prepare the information about the company's operations in different industry segments as required by FASB 131.

d. Would there be any differences in the specification of reportable segments if the building segment had \(\$ 460,000\) in assets instead of \(\$ 560,000\). and the furniture segment had \(\$ 190,000\) in assets instead of \(\$ 90,000\) ? Justify your answer by preparing a schedule showing the percentages for each of the three 10 percent segment tests for each of the five segments using these new amounts for segment assets.

Transcribed Image Text:

Apparel Building Chemical Furniture Machinery Sales to nonaffiliates $870.000 $750.000 $55.000 $95,000 $180.000 Intersegment sales 5.000 15,000 140,000 Cost of goods sold 480,000 450.000 42.000 78.000 150.000 Selling expenses 160.000 40.000 10.000 20.000 30.000 Other traceable expenses 40.000 30.000 6.000 12.000 18.000 Allocated general corporate expenses 80.000 75.000 7.000 13.000 25.000 Segment assets 610,000 560.000 80.000 90.000 140.000 Depreciation expense 60.000 50.000 10.000 11.000 25.000 Capital expenditures 20.000 30,000 15.000