Question

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands): Rakes $ 94 4 Pails S506 26 Shovels S44 14 4 Hardware $122 30 8 Accessories $28 24 2 6 Sales to outsiders Intersegment transfers Interest revenue - outsiders Interest revenue - intersegment Operating expenses-outsiders Operating expenses - intersegment Interest expense Income taxes Tangible assets Intangible assets Intersegment receivables 116 2 40 6 414 20 12 10 116 102 16 2 6 12 8 22 26 22 22 2 8 6 4 4 12 18 4 8 6 In applying the asset test, what is the minimum amount an operating segment must have in order to meet the asset test for a reportable segment? O $12.5. O $18.4. O $17.2 . ооо 0 $19.8. $15.2.

Answer 1

Total Assets:
Rakes	26	=18+8
Pails	122	=116+6
Shovels	16	=12+4
Hardware	20	=12+8
Accessories	14	=8+6
Total Assets	198
Minimum amount	19.8	=198*10%
Option D $19.8 is correct