Cineplex Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to eac
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 2015.
\r\nA B C D E
\r\nSales revenue $40,000 $ 75,000 $580,000 $35,000 $55,000
\r\nCost of goods sold 19,000 50,000 270,000 19,000 30,000
\r\nOperating expenses 10,000 40,000 235,000 12,000 18,000
\r\nTotal expenses 29,000 90,000 505,000 31,000 48,000
\r\nOperating profi t (loss) $11,000 $ (15,000) $ 75,000 $ 4,000 $ 7,000
\r\nIdentifi able assets $35,000 $ 80,000 $500,000 $65,000 $50,000
\r\nSales of segments B and C included intersegment sales of $20,000 and $100,000, respectively.
\r\nInstructions
\r\n(a) Determine which of the segments are reportable based on the:
\r\n(1) Revenue test.
\r\n(2) Operating profit (loss) test.
\r\n(3) Identifiable assets test.
\r\n(b) Prepare the necessary disclosures required by GAAP.