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

question 33

Essay

For internal decision-making purposes, Dashwood Corporation's operating segments have been identified as follows:
Revenues of the segments are external, with the exception of tools, which sold $400,000 to other segments, and Appliances, which sold $200,000 to other segments.
Required:
1. In applying the "revenue" test to identify reporting segments, what is the test value for Dashwood Corporation?
2. Using the "revenue" test, which of Dashwood's operating segments will also be reportable segments?

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Definitions:

State Unemployment Taxes

Taxes imposed by state governments on employers to fund unemployment insurance benefits for laid-off workers.

Hourly Wage Rate

The amount of money paid for each hour of work performed.

Federal Income Tax Withholding

Federal income tax withholding is the process by which an employer deducts a portion of an employee's income to pay directly to the federal government as a prepaid credit towards the employee’s annual tax liability.

Contingent Liabilities

Potential obligations that may arise from past events, depending on the outcome of future events.