The Following Information Pertains to Freeman Corp According to IFRS, Freeman Has a Reportable Segment If That

question 26

Multiple Choice

The following information pertains to Freeman Corp. and its various divisions for the year ended December 31, 2020: $\begin{array}{llr} \text {Sales to external customers. } &\$2,250,000\\ \text { Intersegment sales of products similar to those sold to } &\\ \text { external customers } &675,000\\ \text { Interest earned onloans to other operating segments } &45,000\\\end{array}$
According to IFRS, Freeman has a reportable segment if that segment's revenue equals or exceeds

• A) $ 297,000.
• B) $ 292,500.
• C) $ 229,500.
• D) $ 225,000.

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Definitions:

Outstanding Shares

The total shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Authorized Shares

The maximum number of shares of stock a corporation can issue as specified in its charter.

Investors

Individuals or entities that allocate capital to different types of investments with the expectation of generating a future return.

Residual Claim

A claim on a company's assets and income that is only payable after all other debts and liabilities have been settled.