Chapter 13, Problem 13.3C

a

To determine

Introduction: SEC requires separate reporting of segments based on specific criteria, the process of determining separately reportable operating segments, for which separate supplemental disclosures is required, the process of segment reporting uses the management’s specification of these operating segments, designed by the management to evaluate these segments separately for to ascertain the financial position of the enterprise.

The reportable operating segment for B using all required tests in given segments.

b

To determine

Introduction: SEC requires separate reporting of segments based on specific criteria, the process of determining separately reportable operating segments, for which separate supplemental disclosures is required, the process of segment reporting uses the management’s specification of these operating segments, designed by the management to evaluate these segments separately for to ascertain the financial position of the enterprise.

The way a substantial portion of B’s operations are explained by its segment information using calculations in requirement “a”