Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Highlander Corp. identified four industry segments: books, games, sports and finance. The company properly consolidated the segments when it prepared its annual financial statements. Information
Highlander Corp. identified four industry segments: books, games, sports and finance. The company properly consolidated the segments when it prepared its annual financial statements. Information describing each segment is presented below (in thousands).
Prepare the revenue test and determine which of these segments was separately reportable.
Books | Games | Sports | Finance | |
Sales to outside parties | 9,000 | 3,000 | 1,500 | 0 |
Intersegment revenues transfers | 150 | 200 | 175 | 0 |
Interest income from outside parties | 0 | 30 | 10 | 280 |
Interest income from intersegment loans | 0 | 0 | 0 | 250 |
Operating expenses | 6,500 | 2,124 | 1,052 | 20 |
Interest expense | 83 | 27 | 82 | 110 |
Tangible assets | 1,554 | 3,905 | 395 | 129 |
Intangible assets | 94 | 469 | 0 | 840 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started