Monty Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021. A B C D ESales revenue $39,600 $76,200 $575,500 $34,400 $54,400Cost of goods sold 19,100 49,600 267,500 19,300 30,300Operating expenses 10,200 39,400 231,500 11,900 18,300 Total expenses 29,300 89,000 499,000 31,200 48,600Operating profit (loss) $10,300 $(12,800) $76,500 $3,200 $5,800Identifiable assets $35,400 $79,400 $509,700 $64,300 $50,300Sales of segments B and C included intersegment sales of $20,200 and $101,700, respectively. Determine which of the segments are reportable based on the: Reportable Segment(1) Revenue test. (2) Operating profit (loss) test. (3) Identifiable assets test.

Answer 1 Revenue Test 10% of ($39,600 + $76,200 + $575,500 + $34,400 + $54,400) 10% X $780,100 $78,010 Only Segment C ($575,500) meet this test.Answer 2 Operating Profit (Loss) Test 10 % of ($10,300 + $76,500 + $3,200 + $5,800) 10 % of $95,800 $9,580 Segment A ($10,300), B ($12,800) & Segment C ($76,500) all meet the TestAnswer 3 Identifiable Assets Test 10% of ($35,400 + $79,400 + $ 509,700 + $64,300 + $50,300) 10% X $739,100 $73,910 Segment B & Segment C all meet the test.

Answered: Monty Corporation is a diversified…

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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Monty Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021.

	A	B		C		D		E
Sales revenue	$39,600	$76,200		$575,500		$34,400		$54,400
Cost of goods sold	19,100	49,600		267,500		19,300		30,300
Operating expenses	10,200	39,400		231,500		11,900		18,300
Total expenses	29,300	89,000		499,000		31,200		48,600
Operating profit (loss)	$10,300	$(12,800)	$76,500		$3,200		$5,800
Identifiable assets	$35,400	$79,400		$509,700		$64,300		$50,300

Sales of segments B and C included intersegment sales of $20,200 and $101,700, respectively.

Determine which of the segments are reportable based on the:

				Reportable Segment
(1)		Revenue test.


(2)		Operating profit (loss) test.


(3)		Identifiable assets test.

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