Question

Mason Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified. Books $ 163 35 Computers $ 730 274 Maps $ 439 50 Travel $ 337 152 Finance $ 0 0 Company Total $1,669 511 119 158 3,610 1,518 71 0 48 0 240 1,433 852 0 360 282 295 158 1, 295 44 126 Sales to outside parties Intersegment sales Interest income-external Interest income-intersegment loans Assets Operating expenses Expenses-intersegment sales Interest expense-external Interest expense-intersegment loans Income tax expense (savings) General corporate expenses Unallocated operating costs 242 118 118 191 100 82 0 (30) (42) 89 114 Determine the reportable segments by performing each applicable test. (Figures are in thousands.) a. Revenue test: b. Profit or loss test: C. Asset test: Complete this question by entering your answers in the tabs below. Revenue Test Profit or Loss Test Asset Test Determine the reportable segments by performing revenue test. (Round your percentage answers to 1 decimal place your answers in thousands of dollars.) Segment Revenues Percentage Reported or Not Reported

Answer 1

Mason Company Revenue Test: Reported or Revenues Percentage Not Reported Segment 10.95% Books Reported 269 40.86% Reported Computers 1004 19.90% Reported Маps 489 Travel 489 19.90% Reported Not Reported Finance 206 8.38% Total 100.00% 2457 Books 163+35+71+0 Computers = 730+274+0+0 Мaps 439+50+0+0 Travel 337+152+0+0 Finance 0+0+48+158 Profit or loss test: Reported or Loss Not Reported Revenues Expenses Profit Segment Not Reported Вooks 269 285 16 Reported Computers 1004 966 38 489 Reported Мaps 447 42. Travel Reported 489 351 138 Reported Finance 206 120 86 Total 2457 2169 304 16 Books 126+81+0+32+46 Computers 852+62+0+82-30 - 295+ 42+ 0+ 49+61 Мaps Travel 201+57+0+28+65 Finance 44+0+118+0-42

Asset test: Reported or Percentage Not Reported Segment Assets Books 6.65% Not Reported 240 39.70% Reported Computers 1433 Маps 7.81% Not Reported 282 Not Reported Travel 9.97% 360 35.87% Reported Finance 1295 Total 100.00% 3610 Profit or loss test (numbers in thousands) This test is based on the greater (in absolute amount) of total profit from profitable segments or total loss from segments witha loss. In this case, any segment with profit or loss greater than or equal to $30,400 (10% x $304,000) is separately reportable. Test for sufficient number of segments being reported Four of Mason's segments (computers, maps, travel, and finance) meet at least one of the tests carried out above. To determine whether a sufficient number of segments is being reported, revenues from unaffiliated parties for these four segments must comprise at least 75% of total consolidated revenues. Consolidated revenues (sales to outside parties and interest income- external) for the company amount to $1,788. These four segments do make up over 75% (actually $1,554 or 87%) of this total. Therefore, this company is presenting disaggregated information for enough of its segments Sales to Outsiders Segment Computers 730 439 Мaps Travel 337 Finance 48 Total 1554