A Company That Reports Segment Information Had Average Total Assets

question 126

Multiple Choice

A company that reports segment information had average total assets of $1,522,450 and total net income of $590,700. Segment A had average total assets of $927,800 and segment operating income of $298,300. Segment B had average assets of $594,650 and segment operating income of $292,400. The segment return on assets for Segment B is:

• A) 60.9%.
• B) 50.5%.
• C) 32.2%.
• D) 38.8%.
• E) 49.2%.

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Definitions:

Servient Tenement

The property subject to an easement.

Right-of-Way

The legal right, established by usage or grant, to pass along a specific route through grounds or property belonging to another.

Positive Covenant

A clause in a contract that requires a party to take a specific action or comply with certain conditions.

Cedar Trees

A species of evergreen coniferous trees known for their durable, fragrant wood and various species around the world.