XYZ Corporation Has Eight Industry Segments with Sales, Operating Profit

question 56

Essay

XYZ Corporation has eight industry segments with sales, operating profit and loss, and identifiable assets at and for the year ended December 31, 2014, as follows:

Required:
A.Identify the segments, which are reportable segments under one or more of the 10 percent revenue, operating profit, or assets tests.
B.After reportable segments are determined under the 10 percent tests, they must be reevaluated under a 75 percent revenue test before a final determination of reportable segments can be made.Under this 75 percent test, identify if any other segments may have to be reported.

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Definitions:

Taxable Income

The amount of an individual's or corporation's income that is subject to taxes, after deductions and exemptions.

Standard Deduction

A fixed amount that reduces the income on which you are taxed, which the IRS allows taxpayers to subtract from their gross income to reduce taxable income.

Joint Return

A tax return filed jointly by a married couple, combining their incomes, deductions, and credits.

Taxable Income

The amount of an individual's or entity's income used to determine how much tax is owed to the government.