(Segmented Reporting) Cineplex Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2013.
A
B
C
D
E
Sales revenue
$40,000
$ 75,000
$580,000
$35,000
$55,000
Cost of goods sold
19,000
50,000
270,000
30,000
Operating expenses
10,000
40,000
235,000
12,000
18,000
Total expenses
29,000
90,000
505,000
31,000
48,000
Operating profit (loss)
$11,000
$(15,000)
$ 4,000
$ 7,000
Identifiable assets
$ 80,000
$500,000
$65,000
$50,000
Sales of segments B and C included intersegment sales of $20,000 and $100,000, respectively.
Instructions
(a) Determine which of the segments are reportable based on the:
(1) Revenue test.
(2) Operating profit (loss) test.
(3) Identifiable assets test.
(b) Prepare the necessary disclosures required by GAAP.
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