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West Corporation reported the following consolidated data for 20X2: Sales Consolidated income before taxes Total assets $1,019,000 134,000 1,260,000 Data reported for West's four operating
West Corporation reported the following consolidated data for 20X2: Sales Consolidated income before taxes Total assets $1,019,000 134,000 1,260,000 Data reported for West's four operating divisions are as follows: Division B $142,000 Sales to outsiders Intersegment sales Traceable costs Assets Division A $360,000 90,000 251,000 451,000 Division C $450,000 14,000 296,000 506,000 Division D $ 67,000 17,000 88,000 81,000 96,000 111,000 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 $57,000 in 20X2. The company's corporate center had $26,000 of general corporate expenses and $126,000 of assets that the chief operating decision maker did not use in making the decision regarding the operating segments. b. 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. Answer is not complete. Revenue Long-Lived Assets Yes Yes Country Domestic B Foreign Foreign D Foreign Yes No Yes Yes No No $ 0 Answer is complete and correct. Operating Segments A B D Corporate Admin. Combined Intersegment Eliminations Consolidated $ 450,000 $ 67,000 IS 1,019,000 360,000 $ 90,000 450,000 142,000 $ 0 14,000 464,000 0 $ 1,019,000 121,000 1,140,000 17,000 84,000 (121,000) (121,000) 142,000 0 1.019,000 88,000 121,000 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 251,000 (22,500) 221,500 96,000 (7,100) 53,100 296,000 (23,200) (4,200) 200 731,000 (57,000) 466,000 610,000 (57,000) 466,000 191,200 0 0 (26,000) (26,000) (26,000) 440,000 (26,000) 440,000 221,500 53,100 191,200 200 0 451,000 111,000 506,000 81,000 126,000 126,000 1,149,000 126,000 $ 1,275,000 1,149,000 126,000 1,275,000 451,000 $ 111,000 $ 506,000 $ 81,000 $ $ 0 $
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