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Mason Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified. Determine...

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Mason Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified. Determine the reportable segments by performing each applicable test. Also describe the procedure utilized to ensure that a sufficient number of segments are being separately disclosed. (Figures are in thousands.)

Company Total

Books

Computers

Maps

Travel

Finance

Sales to outside parties

$1,547

$121

$696

$416

$314

–0–

Intersegment sales

421

24

240

39

118

–0–

Interest income— external

97

60

0

0

0

$37

Interest income—

intersegment loans

147

–0–

–0–

–0–

–0–

147

Assets

3,398

206

1,378

248

326

1,240

Operating expenses

1,460

115

818

304

190

33

Expenses— intersegment sales

198

70

51

31

46

0

Interest expense— external

107

0

0

0

0

107

Interest expense— intersegment loans

177

21

71

38

47

0

Income tax expense (savings)

21

12

-41

27

31

-8

General corporate expenses

55

Unallocated operating costs

80

Answered Same Day Dec 24, 2021

Solution

Robert answered on Dec 24 2021
118 Votes
Mason Company has prepared consolidated financial statements for the cu
ent year and is now
gathering information in connection with the following five operating segments it has identified.

Company
Total Books Computers Maps Travel Finance
Sales to outside parties $ 1,547 $ 121 $ 696 $ 416 $ 314 0
Intersegment sales 421 24 240 39 118 0
Interest income — external 97 60 0 0 0 $ 37
Interest income — intersegment loans 147 0 0 0 0 147
Assets 3,398 206 1,378 248 326 1,240
Operating expenses 1,460 115 818 304 190 33
Expenses — intersegment sales 198 70 51 31 46 0
Interest expense — external 107 0 0 0 0 107
Interest expense — intersegment
loans
177 21 71 38 47 0
Income tax expense (savings) 21 12 (41) 27 31 (8)
General corporate expenses 55
Unallocated operating costs ...
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