Reference no: EM13485492
Twodor Company is involved in four separate industries. Selected financial information concerning Twodor's involvement in each of the four industries is presented below.
Industry segment
A B C D Total
Sales to nonaffiliated $80,000 420,000 $24,000 2,200 $136,200
Intersegment sales 130,000 84,000 12,000 3,800 229,800
Total revenue 210,000 104,000 36,000 16,000 $366,000
Operating profit (loss) (17,000) 12,000 1,500 (600) (4,500)
Identifiable assets 222,000 110,500 28,000 26,000 386,500
Required
Using all tests, determine which of industry segments are reportable segments and explain how non reportable (if any) should be reported.
Amount on Quarterly Reports
The information is Available for Bailey Company for 2008.
1.On January 2, 2008, Bailey Company paid taxes amounting to $60,000 on its plant and equipment for the Calendar year. In late March 2008 Bailey made major repairs to its major repairs machinery mounting to $66,000. These repairs will benefit the remainder of the calendar
Year's operations.
2.An inventory loss of $150,000 from market decline occurred in August 2008. Bailey recorded this loss in August 2008 after its June 30 quarterly report was issued. None of this loss hab been recovered by the end of 2008.
3.At the end of July 2008, Bailey sold some equipment with a book value of $22,000 for $32,500
Required
State the dollar amounts that should appear in Bailey Company's March 31, June 30, September 30, and December 31, 2008, quarterly financial statements to report.
A. Property taxes
B. Major repairs to machinery
C. Inventory loss from market decline
D. The gain or loss on sale of equipment.