Multiplex Inc., a public company whose stock is traded on a national stock exchange, reported the following information on its consolidated financial statements for 20X5:

From the consolidated income statement:
Sales revenues	$	591,000,000
Rental revenues		49,000,000
Income before income taxes		34,000,000
Income taxes		22,000,000
From the consolidated balance sheet:
Total assets	$	571,000,000

Multiplex management determined that it had the following operating segments during 20X5: (1) car rental, (2) aerospace, (3) communications, (4) health and fitness products, and (5) heavy equipment manufacturing. The company assembled the following information for these industry segments for 20X5 (dollar amounts stated in millions):

Item	Car Rental				Aerospace				Communications				Health/ Fitness				Heavy Equipment
Sales						$	226			$	60			$	50			$	270
Rentals		$	34
Intersegment sales			9																35
Cost of goods sold							139												179
Selling expenses			18				62				30				25				57
Other traceable expenses			6				10				13				7				30
Allocation of common costs			4				9				4				4				9
Assets			40				127				90				100				215
Other information:
Depreciation expense (included above)			6				35				6				7				45
Capital expenditures			5				50								35				60

Additional Information

1. The corporate headquarters had general corporate expenses totaling $35,000,000 and assets of $27,000,000 (the chief operating decision maker used neither piece of information in defining operating segment performance).
2. The car rental segments $9,000,000 of intersegment sales consisted of rentals to the aerospace ($4,000,000) and communications ($5,000,000) segments. The intersegment sales of $35,000,000 of the heavy equipment segment were made to the aerospace segment to use in its manufacturing operations. The heavy equipment segment realized a profit of $10,000,000 from this sale. At December 31, 20X5, $9,000,000 of this profit was unrealized from a consolidated viewpoint.
3. At December 31, 20X5, no intercompany receivables or payables were related to the intersegment car rentals. However, the heavy equipment segment had a $19,000,000 receivable from the intersegment sale to the aerospace segment. The companys policy is to include intersegment receivables in a segments assets for purposes of evaluating segment performance.

Required: a. Prepare schedules for each of the three 10 percent tests: (1) the revenue test, (2) the profit-or-loss test, and (3) the assets test. Each schedule should indicate which of Multiplexs industry segments are reportable segments for 20X5.

b. Do Multiplexs reportable segments meet the 75 percent revenue test?

c. Prepare the information about the companys operations in different industry segments as required by ASC 280.