Osprin Corporation Has Three Operating Segments,as Summarized Below

Question

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The Answer is 1.Total revenue including intersegment sales = $65,000 + $16,000 = $81,000.The test value limit is $8,100 ($81,000 × 10%).
2.The operating profit or loss test includes the operating profit or loss for each segment,which excludes Interest Expense and Income Tax Expense.

1.Total revenue including intersegment sales = $65,000 + $16,000 = $81,000.The test value limit is $8,100 ($81,000 × 10%). 2.The operating profit or loss test includes the operating profit or loss for each segment,which excludes Interest Expense and Income Tax Expense. Total operating profit (all segments had profit;no segments had a loss)= $48,000.The test value limit is $4,800 ($48,000 × 10%). 3.The assets of all segments combined is $31,000.The test value limit is $3,100 ($31,000 × 10%). 4.Under the revenue test,the Capsule and Pill segments are reportable.The Liquid segment's total sales ($5,000 + $2,000)is $7,000 and does not exceed the limit.Under the operating profit or loss test,the Capsule and Pill segments are reportable.Under the asset test,the Capsule and Liquid segments are reportable.Because each segment meets at least one of the three tests,they will all be considered reportable segments.

Total operating profit (all segments had profit;no segments had a loss)= $48,000.The test value limit is $4,800 ($48,000 × 10%).
3.The assets of all segments combined is $31,000.The test value limit is $3,100 ($31,000 × 10%).
4.Under the revenue test,the Capsule and Pill segments are reportable.The Liquid segment's total sales ($5,000 + $2,000)is $7,000 and does not exceed the limit.Under the operating profit or loss test,the Capsule and Pill segments are reportable.Under the asset test,the Capsule and Liquid segments are reportable.Because each segment meets at least one of the three tests,they will all be considered reportable segments.

Osprin Corporation Has Three Operating Segments,as Summarized Below

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