Note: This Is a Kaplan CPA Review Question

question 34

Multiple Choice

Note: This is a Kaplan CPA Review Question
The following information pertains to Aria Co. (Aria) and its operating segments for the year ended December 31, 20X6:
Sales to unaffiliated customers $2,000,000
Intersegment sales of products $600,000
Interest earned on loans to other industry segments $40,000
Aria and all its divisions are engaged solely in manufacturing operations. Aria evaluates divisional performance based on controllable contribution by segments. Aria has a reportable segment if that segment's revenue exceeds:

• A) $200,000
• B) $260,000
• C) $204,000
• D) $264,000

---

Definitions:

Tax Liability

The total amount of tax owed to a taxing authority, such as the IRS, based on taxable income and tax rate.

Personal and Dependency

Terms related to exemptions that can be claimed on tax returns for oneself and for dependents, affecting taxable income.

Exemption

Deductions allowed by law to reduce taxable income based on the taxpayer and dependents.

Married Couple

Two individuals legally united in marriage, whose marital status can affect their tax filings, legal rights, and other societal entitlements.