Crisfield Company Has Two Reportable Segments,C and D

question 39

Multiple Choice

Crisfield Company has two reportable segments,C and D.Segment C made $4,000,000 of sales to external customers and $400,000 of sales to other operating segments.Segment D,on the other hand,made sales of $8,000,000 to external customers and $1,600,000 of sales to other operating segments.Crisfield Company reported $13,200,000 of revenues on its consolidated income statement.What calculation below correctly determines whether Crisfield Company's reportable segments satisfy the 75% revenue test?

• A)$14,000,000/$15,200,000
• B)$14,000,000/$13,200,000
• C)$12,000,000/$13,200,000
• D)$12,000,000/$15,200,000

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