Exam 15: Segment and Interim Financial Reporting

The accountant for Baxter Corporation has assigned most of the company's assets to its three segments as follows: The unassigned assets consist of $430,000 of unallocated goodwill and $270,000 of assets attached to the corporate headquarters.For internal decision-making purposes,goodwill is not assigned to the segments and the assets assigned to the corporate headquarters are allocated equally to the operating segments. Required: 1.What is the proper threshold value to use in determining which of the operating segments shown above are reporting segments? 2.Which of the operating segments are considered reporting segments?

Jeale Corporation is preparing its interim financial statements for the third quarter of calendar 2011.The following information was provided for the preparation of the statements: Additional information: At the end of the year,Jeale accrues its annual pension and depreciation expenses which amount to $60,000 and $42,000,respectively. Required: Prepare Jeale's interim income statement for the third quarter of calendar 2011.

Which one of the following operating segment information items is not directly named by GAAP to be reconciled to consolidated totals?

For internal decision-making purposes,Geogh Corporation identifies its industry segments by geographical area.For 2011,the total revenues of each segment are provided below.There are no intersegment revenues. Required: 1.Which operating segments will be considered reporting segments based on the revenue test? 2.What is the test value for determining whether a sufficient number of segments are reported? 3.What will be the minimum number of segments that must be reported?

Which of the following is not a quantitative threshold for determining a reportable segment?

The following data relate to Elle Corporation's industry segments.(Elle HQ represents the corporate headquarters).All other segments are geographical sales segments. Required: 1.Prepare a report which reconciles the reportable segment profits to total consolidated profits assuming that corporate expenses are not allocated to the operating segments. 2.Prepare a report which reconciles the reportable segment profits to total consolidated profits assuming that corporate expenses are allocated evenly among the operating segments.

Snodberry Catering has five operating segments,as summarized below: Required: Determine which of the operating segments of Snodberry Catering are reportable segments for the period shown.

Which one of the following operating segment disclosures is not required by GAAP?

Similar operating segments may be combined if the segments have similar economic characteristics.Which one of the following is a similar economic characteristic under GAAP?

What is the threshold for reporting a major customer?

Jacana Company uses the LIFO inventory method.During the second quarter,Jacana experienced a 100-unit liquidation in its LIFO inventory at a LIFO cost of $430 per unit.Jacana considered the liquidation temporary and expects to replace the units in the third quarter at an estimated replacement cost of $460 a unit.The cost of goods sold computation in the interim report for the second quarter will

Leotronix Corporation estimates its income by calendar quarter as follows for 2011: Required: Determine Leotronix's estimated effective tax rate.

Nettle Corporation is preparing its first quarterly interim report.It is subject to a corporate income tax rate of 20% on the first $50,000 of taxable income and 35% on taxable income above $50,000.Its estimated pretax accounting income for 2011,by quarter,is: Nettle expects to earn and receive operating income for the year and does not contemplate any changes in accounting procedures or principles that would affect its pretax accounting income. Required: 1.Determine Nettle's estimated effective tax rate for 2011. 2.Prepare a schedule to show Nettle's estimated net income for each quarter of 2011.

The following data relate to Falcon Corporation's industry segments: Required: 1.Which of Falcon's operating segments would be considered reporting segments under the "revenue" test? 2.Which of Falcon's operating segments would be considered reporting segments under the "asset" test?

The following table is provided in the disclosures for interim reporting by Bigg Company,regarding the location of their assets. Based on the table,which of the following statements is true?

Sandpiper Corporation paid $120,000 for annual property taxes on January 15,2011,and $20,000 for building repair costs on March 10,2011.Total repair expenses for the year were estimated to be $200,000,and are normally accrued during the year until incurred.What total amount of expense for these items was reported in Sandpiper's first quarter 2011 interim income statement?

Krull Corporation is preparing its interim financial statements for the third quarter of calendar 2011. The following trial balance information is available for third quarter: Additional information: At the end of the year,Krull distributes annual employee bonuses and charitable donations that are estimated at $40,000,and $12,000,respectively.The cost of goods sold includes the liquidation of a $45,000 base layer in inventory that Krull will restore in the fourth quarter at a cost of $75,000.Effective corporate tax rate for 2011 is 32%. Required: Prepare Krull's interim income statement for the third quarter of calendar 2011.

The estimated taxable income for Shebill Corporation on January 1,2011,was $80,000,$100,000,$100,000,and $120,000,respectively,for each of the four quarters of 2011.Shebill's estimated annual effective tax rate was 30%.During the second quarter of 2011,the estimated annual effective tax rate was increased to 34%.Given only this information,Shebill's second quarter income tax expense was

For an operating segment to be considered a reporting segment under the revenue threshold,its reported revenue must be 10% or more of

Maxtil Corporation estimates its income by calendar quarter as follows for 2011: Required: Determine Maxtil's estimated effective tax rate.