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The accountant for Baxter Corporation has assigned most of the company's assets to its three segments as follows:
The unassigned assets consist of $430,000 of unallocated goodwill and $270,000 of assets attached to the corporate headquarters.For internal decision-making purposes,goodwill is not assigned to the segments and the assets assigned to the corporate headquarters are allocated equally to the operating segments.
Required:
1.What is the proper threshold value to use in determining which of the operating segments shown above are reporting segments?
2.Which of the operating segments are considered reporting segments?
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