Riley Corp., a publicly owned corporation, assesses performance and makes operating decisions using the following information for its reportable segments:

Total revenues		$925,000
Total profita		$83,000

Included in the total profit and loss is interest expense of $10,000. In addition, Riley has $1,500 of interest income for its reportable segments that is not included in the reports used internally. For purposes of segment reporting, Riley should report segment profit of:

$84,500 : incorrect

$93,000

$73,000

$83,000

Explanation: This answer is incorrect. Per ASC Topic 280, an enterprise shall report a measure of profit or loss based on the measure reported to the chief operating decision maker for purposes of making decisions. The information used by management includes intersegment profits and should be included.

I still don't understand : ( Please help if can! Thank you!