E 14-3 Apply threshold tests-disclosure

Visclosky Corporation operates entirely in the United States but in different industry. It segments the business based on industry. Total sales of the segments, including intersegment sales, are as follows:

Concrete and stone products $200,000

Construction 500,000

Lumber and wood products 900,000

Building materials 500,000

Other 50,000

Further analysis reveals sales from one segment to another as follows:

Lumber and wood products $400,000

Building materials 200,000

REQUIRED:

1. Determine which segments are reportable segments under both the 10% and the 75% revenue tests.

2. Prepare a schedule suitable for disclosing revenue by industry segment for external reporting.

3. Prepare a reconciliation of segment revenue with corporate revenue.