In 20X6 and 20X7, each of Putney Company's four operating segments met one of the three quantitative tests for segment reporting. In 20X8, Segment B failed to qualify under the prescribed tests because of abnormal financial conditions. The other three segments qualified for reporting. For 20X8, Segment B:

should be excluded from segment disclosure but referred to in the management letter to shareholders.

should be distinctly separated from the other three segments and listed as a nonqualifying segment.

should be combined with one of the other three segments and reported.

should be included in the segment disclosures at the discretion of management.

2-

Main Manufacturing Corporation reported consolidated revenues of $50,000,000 on its income statement for 20X8. The management of the corporation identified 3 industry segments, M, N, and O. These segments had the following intersegment sales and transfers during 20X8:

Operating Segment Intersegment Sales and Transfers

M $2,000,000

N $2,400,000

O $3,000,000

For Main Manufacturing Corporation, the revenue test would be satisfied if any of its industry segments had revenue equal to or greater than which of the following?

$7,400,000

$5,740,000

$5,000,000

$4,260,000

3-

Five of eight internally reported operating segments of Rollins Company qualify under the standards set by ASC 280 for segment reporting. However, the five identified segments do not meet the 75 percent revenue test. ASC 280 prescribes that management:

		subdivide segments until there are at least 10 reportable segments.
		consolidate the remaining operating segments and include them under an all other category.
		select additional operating segments until the 75% threshold is met.
		include the heading corporate headquarters as an operating segment.