The following information was obtained from the Clovis Company:
$B12412032C76068040D160240(8)E3264(4)F809616G48040016H120‾160‾(48‾)$2,396$2,280$132\begin{array}{lrrr}\text { Operating } & & \text { Segment } & \text { Profit } \\\text { Segment } & \text { Revenue } & \text { Assets } & \text { (Loss )} \\ \mathrm{A} & \$ 640 & \$ 520 & \$ 88 \\\mathrm{~B} & 124 & 120 & 32 \\\mathrm{C} & 760 & 680 & 40 \\\mathrm{D} & 160 & 240 & (8) \\\mathrm{E} & 32 & 64 & (4) \\\mathrm{F} & 80 & 96 & 16 \\\mathrm{G} & 480 & 400 & 16 \\\mathrm{H} & \underline{120}& \underline{160} & \underline{(48})\\&\$2,396&\$2,280&\$132\end{array}$
Required:
a. Using the revenue test, which segments should be separately reported?
b. Using the asset test, which segments shou'd be separately reported?
c. Using the profit (loss) test, which segments should be separately reported?

Question

The following information was obtained from the Clovis Company:

B12412032C76068040D160240(8)E3264(4)F809616G48040016H120‾160‾(48‾)$2,396$2,280$132\begin{array}{lrrr}\text { Operating } & & \text { Segment } & \text { Profit } \\\text { Segment } & \text { Revenue } & \text { Assets } & \text { (Loss )} \\ \mathrm{A} & \$ 640 & \$ 520 & \$ 88 \\\mathrm{~B} & 124 & 120 & 32 \\\mathrm{C} & 760 & 680 & 40 \\\mathrm{D} & 160 & 240 & (8) \\\mathrm{E} & 32 & 64 & (4) \\\mathrm{F} & 80 & 96 & 16 \\\mathrm{G} & 480 & 400 & 16 \\\mathrm{H} & \underline{120}& \underline{160} & \underline{(48})\\&\$2,396&\$2,280&\$132\end{array}

Required:
a. Using the revenue test, which segments should be separately reported?
b. Using the asset test, which segments shou'd be separately reported?
c. Using the profit (loss) test, which segments should be separately reported?

Dakota Hawkins · Accepted Answer

Final Answer :  a.A, C, and G (Test   = 0.10 $ 2 , 396 = $ 240  =0.10 \quad \$ 2,396=\$ 240  = 0.10 $2 , 396 = $240  ; any segment with revemues   \$ 240 > > $ 240   > \$ 240  > $240   )b.   A , C , D  \mathrm{A}, \mathrm{C}, \mathrm{D}  A , C , D  , and   G ( T e s t = 0.10 ‘ $ 2 , 280 = $ 228  \mathrm{G}(\mathrm{Test}=0.10 ` \$ 2,280=\$ 228  G ( Test = 0.10‘$2 , 280 = $228  ; any segment with assets   \$ 228 > > $ 228   > \$ 228  > $228   )c.   A , B , C  \mathrm{A}, \mathrm{B}, \mathrm{C}  A , B , C  , and   H  \mathrm{H}  H   Test   = 0.1 0 ′ ( $ 16 + $ 16 + $ 88 + $ 32 + $ 40 ) = $ 19.2  =0.10^{\prime}(\$ 16+\$ 16+\$ 88+\$ 32+\$ 40)=\$ 19.2  = 0.1 0 ′ ( $16 + $16 + $88 + $32 + $40 ) = $19.2  ; any segment with absolute amount of profit or loss   \$ 19.2\right] > > $ 19.2 ]  \left. > \$ 19.2\right]  > $19.2 ]

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