Exercise 15-40 (Algo) Segment Reporting (LO 15-5) Eastlawn Travel has two operating divisions, Tours and Resorts. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows: Revenues Costs The two divisions have an arrangement by which Resorts gives coupons redeemable for tours and Tours gives discount coupons good for stays at a resort. The value of the coupons for the tours redeemed during the past year totaled $7.4 million. The discount coupons redeemed at the resorts totaled $4.3 million. As of the end of the year, all coupons for the current year expired. Tours $ 35,410,000 19,905,000 Required: What are the operating profits for each division considering the effects of the costs arising from the joint agreement? Note: Enter your answers in thousands. Tours Resorts Answer is complete but not entirely correct. Operating Profits $ Resorts $ 24,410,000 17,705,000 $ 8,105 X 2,405 x

Exercise 15-40 (Algo) Segment Reporting (LO 15-5) Eastlawn Travel has two operating divisions, Tours and Resorts. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows: Revenues Costs The two divisions have an arrangement by which Resorts gives coupons redeemable for tours and Tours gives discount coupons good for stays at a resort. The value of the coupons for the tours redeemed during the past year totaled $7.4 million. The discount coupons redeemed at the resorts totaled $4.3 million. As of the end of the year, all coupons for the current year expired. Tours $ 35,410,000 19,905,000 Required: What are the operating profits for each division considering the effects of the costs arising from the joint agreement? Note: Enter your answers in thousands. Tours Resorts Answer is complete but not entirely correct. Operating Profits $ Resorts $ 24,410,000 17,705,000 $ 8,105 X 2,405 x

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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