For Internal Decision-Making Purposes,Elom Corporation's Operating Segments Have Been Identified

question 49

Essay

For internal decision-making purposes,Elom Corporation's operating segments have been identified as follows:
Corporate assets are typically allocated back evenly to the segments for internal analysis purposes.
Required:
1.In applying the "asset" test to identify reporting segments,what is the test value for Elom Corporation?
2.Using the "asset" test,which of Elom's operating segments will also be reporting segments?

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Definitions:

Present Promise

A vow or commitment to take action or uphold terms at the current time.

Moral Obligation

A duty or responsibility that is perceived as ethically required, even though it is not legally enforceable.

Requirements Contract

A contractual agreement in which one party agrees to supply as much of a product or service as the other party needs during a specified period.

Particular Commodity

Refers specifically to a unique or specified commodity traded on commodity markets, such as gold, oil, or wheat.