The following information pertains to Klein Corp. and its operating segments for the year ended December 31, year 1:

Combined profit of segments reporting profit

$600,000

Combined loss of segments reporting loss

(400,000)

Combined profit and loss of all segments

200,000

Klein has a reportable segment if that segment's operating profit or loss is

$55,000 loss.

$55,000 profit.

$25,000 profit.

$60,000 profit.