Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mason Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it
Mason Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified.
Company Total | Books | Computers | Maps | Travel | Finance | ||||||||||||||||||
Sales to outside parties | $ | 1,565 | $ | 128 | $ | 701 | $ | 419 | $ | 317 | $ | 0 | |||||||||||
Intersegment sales | 435 | 26 | 245 | 41 | 123 | 0 | |||||||||||||||||
Interest incomeexternal | 101 | 62 | 0 | 0 | 0 | 39 | |||||||||||||||||
Interest incomeintersegment loans | 149 | 0 | 0 | 0 | 0 | 149 | |||||||||||||||||
Assets | 3,385 | 211 | 1,340 | 253 | 331 | 1,250 | |||||||||||||||||
Operating expenses | 1,473 | 117 | 823 | 306 | 192 | 35 | |||||||||||||||||
Expensesintersegment sales | 206 | 72 | 53 | 33 | 48 | 0 | |||||||||||||||||
Interest expenseexternal | 109 | 0 | 0 | 0 | 0 | 109 | |||||||||||||||||
Interest expenseintersegment loans | 155 | 23 | 73 | 40 | 19 | 0 | |||||||||||||||||
Income tax expense (savings) | 33 | 17 | (39 | ) | 32 | 36 | (13 | ) | |||||||||||||||
General corporate expenses | 60 | ||||||||||||||||||||||
Unallocated operating costs | 85 | ||||||||||||||||||||||
Determine the reportable segments by performing each applicable test. (Figures are in thousands.)
-
Revenue test:
-
Profit or loss test:
-
Asset test:
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