When Totaling the Revenues to Use as the Basis for the 75

question 23

Multiple Choice

When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?

• A) $ 1,670,000.
• B) $12,525,000.
• C) $15,487,500.
• D) $16,700,000.
• E) $20,650,000.

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Definitions:

Co-Own Business

A business jointly owned by two or more individuals or entities, sharing the responsibilities, profits, and losses.

Book Value

The net value of a company's assets minus its liabilities, often used to assess its financial worth.

Market Value

The present-day selling or buying price of an asset or service in a market.

Note Payable

A financial obligation or loan documented by a written promissory note specifying the principal amount, interest rate, and maturity date.