Question

REQUIRED 1. Calculate tax expense that should be reported each quarter. 2. Calculate income that should be reported each quarter. PROBLEMS P 15-1 Apply threshold tests Rise Corporation is based in the United States and its business is divided into segments based on geo graphical location. The following information has been accumulated for use in preparing segment dis- closures in 2016: Intersegment Sales ely OSS United States Canada Europe Latin America Japan Korea Singapore Other Unaffiliated Sales $250,000 200,000 130,000 120,000 100,000 50,000 20,000 10.000 $880,000 10,000 30,000 Total $250.000 200,000 130,000 130,000 130,000 50,000 30,000 10,000 $930.000 10,000 $50.000 REQUIRED 1. Determine Rise's reportable segment under the 10 percent revenue test. 2. Are additional reportable segments required? 3. Prepare a schedule to disclose segmented revenue and its reconciliation for 2016, P 15-2 whold tests in millions

Answer 1

Solution:-
1	Information about Rise Corporation is based in the United States and operates in different Country, furnished in the following statement
	Particulars	US	Canada	Europe	Latin America	Japan	Korea	Singapore	Other	Total
	External Sales	2,50,000	2,00,000	1,30,000	1,20,000	1,00,000	50,000	20,000	10,000	8,80,000
	Inter segment sales				10,000	30,000		10,000		50,000
	Total	2,50,000	2,00,000	1,30,000	1,30,000	1,30,000	50,000	30,000	10,000	9,30,000
	% of segement Revenue	27%	22%	14%	14%	14%	5%	3%	1%	100%
	Reportable Segment	Yes	Yes	Yes	Yes	Yes	No	No	No
	Criteria Satisfied	Revenue	Revenue	Revenue	Revenue	Revenue	Revenue	Revenue	Revenue
2	Reportable Segments
a	A business segment or geographical segment should be identified as a reportable segment if:
b	its segment result, whether profit or loss, is 10 per cent or more of -
	(i) the combined result of all segments in profit, or
	(ii) the combined result of all segments in loss, whichever is greater in absolute amount; or
c	its segment assets are 10 per cent or more of the total assets of all segments.
3	Disclosure Requirements
1	segment revenue, classified into segment revenue from sales to external customers and segment revenue from transactions with other segments;