Blanton Corporation Is Comprised of Five Operating Segments

question 24

Essay

Blanton Corporation is comprised of five operating segments.Information about each of these segments is as follows (in thousands):
Required:
(a. )Which operating segments are reportable under the revenue test?
(b. )What is the total amount of revenues in applying the revenues test?
(c. )Which operating segments are reportable under the profit or loss test?
(d. )In applying the profit and loss test,what is the minimum amount an operating segment must have in order to meet the profit and loss test for a reportable segment?
(e. )Which operating segments are reportable under the asset test?
(f. )In applying the asset test,what is the minimum amount an operating segment must have in order to meet the asset test for a reportable segment?
(g. )Which operating segments are reportable?
(h. )According to the test results for reportable segments,is there a sufficient number of reported segments or should any additional segments also be disclosed? Explain the reason for your conclusion.

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Definitions:

Canada Call

A provision in some bonds that allows the issuer to redeem the bond early, specifically in the Canadian market.

Maturity Date

The specified date on which the principal amount of a bond or other debt instrument is due to be paid in full.

Default Probability

The likelihood that a borrower will be unable to make required debt payments, leading to a default.

Strip Bond

A bond that has had its coupon payments and principal repayment separated, creating zero-coupon securities from a regular bond.