Kurves Corp. had six different operating segments reporting the following operat

Question

Kurves Corp. had six different operating segments reporting the following operating profit and loss figures:

Which one of the following statements is true?

Segment C is not a reportable segment based on this test.

Segment E is a reportable segment based on this test.

Segment A is a reportable segment based on this test.

Segment D is a reportable segment based on this test.

Segment B is not a reportable segment based on this test.

Segment Profit or
(Loss) A $ 112,000 B (196,000 ) C 1,316,000 D 616,000 E (126,000 ) F (140,000 )

Explanation / Answer

Calculate reportable segment :

Greater = 2044000

Threshold = 2044000*10% = 204400

So answer is d) Segment D is a reportable segment based on this test.

Segment operating profit Segment operating loss Reporatable A 112000 No B -196000 No C 1316000 Yes D 616000 Yes E -126000 No F -140000 No Total 2044000 -462000

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