Ansfield, Inc The Minimum Amount of Profit or Loss a Segment Must

question 11

Multiple Choice

Ansfield, Inc.has several potentially reportable segments.The following financial information has been determined for the current fiscal year: ?

$$\begin{array} { l r } \text { Consolidated net income } & \$ 1,000,000 \\\text { Operating income before taxes } & 1,500,000 \\\text { Net operating income of all segments } & 1,350,000 \\\text { Total consolidated revenue } & 8,000,000 \\\text { Total revenue of all segments, } & \\\text { excluding intersegment sales } & 7,000,000 \\\text { Total intersegment sales } & 1,200,000 \\\text { Consolidated total assets } & 50,000,000 \\\text { Total assets of all segments } & 45,000,000\end{array}$$ The minimum amount of profit or loss a segment must have to qualify as reported is ____.

• A)$100,000
• B)$135,000
• C)$150,000
• D)The answer cannot be determined from the information given.

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