West Corporation reported the following consolidated data for 20X2 Sales $ 801,000 Consolidated income before taxes 138,000 Total assets 1,300,000 Data reported for Wests four operating divisions are as follows Division A Division B Division C Division D Sales to outsiders $ 270,000 $ 150,000 $ 330,000 $ 51,000 Intersegment sales 62,000 16,000 21,000 Traceable costs 255,000 100,000 300,000 92,000 Assets 491,000 115,000 510,000 85,000 Intersegment sales are priced at cost, and all goods have been subsequently sold to nonaffiliates Some joint production costs are allocated to the divisions based on total sales These joint costs were $45,000 in 20X2 The companys corporate center had $30,000 of general corporate expenses and $130,000 of assets that the chief operating decision maker did not use in making the decision regarding the operating segments Required Each of the following items is unrelated to the others The divisions are industry segments Prepare a segmental disclosure worksheet for the company (Do not round your intermediate calculations ) Operating Segments A B C D Corporate Admin Combined Intersegment Eliminations Consolidated Revenues Sales to unaffiliated customers Intersegment sales Total revenue Operating costs Traceable costs Allocated Segment profit (loss) Other items General corporate expenses Income from continuing operations Assets Segment General corporate Total assets Prepare schedules showing which segments are reportable Segments Revenue Segment Profit Segment Assets A B C D Assume that each division operates in an individual geographic area, Division A is in the domestic area, and each of the other divisions operates in a separate foreign country Assume that one half of the assets in each geographic area represents long lived, productive assets as defined in ASC 280 Prepare schedules showing which geographic areas are reportable using a 10 percent materiality threshold Country Revenue Long Lived Assets A Domestic B Foreign C Foreign D Foreign Determine the amount of sales to an outside customer that would cause that customer to be classified as a major customer under the criteria of ASC 280 Amount of sales

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jan 10, 2021

West Corporation reported the following consolidated data for 20X2: Sales $ 801,000 Consolidated income before taxes 138,000 Total assets 1,300,000 Data reported for Wests four

West Corporation reported the following consolidated data for 20X2:


Sales	$	801,000
Consolidated income before taxes		138,000
Total assets		1,300,000

Data reported for West’s four operating divisions are as follows:

	Division A		Division B		Division C		Division D
Sales to outsiders	$	270,000	$	150,000	$	330,000	$	51,000
Intersegment sales		62,000				16,000		21,000
Traceable costs		255,000		100,000		300,000		92,000
Assets		491,000		115,000		510,000		85,000

Intersegment sales are priced at cost, and all goods have been subsequently sold to nonaffiliates. Some joint production costs are allocated to the divisions based on total sales. These joint costs were $45,000 in 20X2. The company’s corporate center had $30,000 of general corporate expenses and $130,000 of assets that the chief operating decision-maker did not use in making the decision regarding the operating segments.

Required:

Each of the following items is unrelated to the others.

The divisions are industry segments.

Prepare a segmental disclosure worksheet for the company. (Do not round your intermediate calculations.)

	Operating Segments
	A	B	C	D	Corporate Admin.	Combined	Intersegment Eliminations	Consolidated
Revenues:
Sales to unaffiliated customers
Intersegment sales
Total revenue
Operating costs:
Traceable costs
Allocated
Segment profit (loss)
Other items:
General corporate expenses
Income from continuing operations
Assets:
Segment
General corporate
Total assets

Prepare schedules showing which segments are reportable

Segments	Revenue	Segment Profit	Segment Assets
A
B
C
D

Assume that each division operates in an individual geographic area, Division A is in the domestic area, and each of the other divisions operates in a separate foreign country. Assume that one-half of the assets in each geographic area represents long-lived, productive assets as defined in ASC 280. Prepare schedules showing which geographic areas are reportable using a 10 percent materiality threshold.

Country	Revenue	Long-Lived Assets
A Domestic
B Foreign
C Foreign
D Foreign

Determine the amount of sales to an outside customer that would cause that customer to be classified as a major customer under the criteria of ASC 280.

Amount of sales