An entity and its divisions reported the following for the current year:Sales to unaffiliated customers40,000,000Intersegment sales of product similar to those sold to unaffiliated customers12,000,000Interest earned on loans to other operating segments1,000,000 The entity and all of its divisions are engaged solely in manufacturing operations.To qualify as reportable segment, the segment revenue should at least be what amount?A. 5,300,000B. 4,100,000C. 5,200,000D. 4,000,000

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Answered: To qualify as reportable segment, the…

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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An entity and its divisions reported the following for the current year:

Sales to unaffiliated customers	40,000,000
Intersegment sales of product similar to those sold to unaffiliated customers	12,000,000
Interest earned on loans to other operating segments	1,000,000

The entity and all of its divisions are engaged solely in manufacturing operations.

To qualify as reportable segment, the segment revenue should at least be what amount?

A. 5,300,000

B. 4,100,000

C. 5,200,000

D. 4,000,000

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