Question

The following information pertains to Superstar Music's operating segments for the year ended December 31. | External Sales Intersegment Sales Net Income (Loss) Assets Axl 10,000 5,000 9,000 5,000 | Bruce 0 15,000 0 12,000 Celine 15,000 0 5,000 5,000 Diddy 10,000 10,000 3,000 5,000 Elvis 70,000 30,000 50.000 60,000 Total 105,000 60.000 49.000 87.000 Based solely, on this information indicate which of the segments are considered to be reportable segments: Use check boxes to indicate correct answers. 1. Axl 2. Bruce 3. Celine 4. Diddy 5. Elvis

Please if some1 can help me with this question.

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Answer 1

Segment Test:						Quantitative Thresholds
	Axl	Bruce	Celina	Diddy	Elvis		Profit	Loss
External Sales	10,000	-	15,000	10,000	70,000	105,000
Inter segment Sales	5,000	15,000	-	10,000	30,000	60,000
Net Income (Loss)	-9,000	-	5,000	3,000	50,000	49,000	58,000	-9,000
Assets	5,000	12,000	5,000	5,000	60,000	87,000
Segment Test:						Quantitative Thresholds
	A	B	C	D	E		Profit	Loss
Sales	No	No	No	Yes	Yes	$16,500.00
Net Income (Loss)	Yes	No	No	No	Yes		$5,800.00	($900.00)
Assets	No	Yes	No	No	Yes	8,700
When using revenues as criteria, a segment must include at least 10% of combined revenues,
and Net Income (Loss) as criteria , a segment must include at least 10% of Profit or Loss
and Assets as criteria , a segment must include at least 10% of Sales
Based on including three criteria Elvis division should be reportable segment