Exam 13: Segment and Interim Reporting

An analysis of Abbey Company's operating segments provides the following information: -Refer to the above information.Which of the operating segments above are reportable segments?

The following information pertains to revenue earned by Timm Co.'s industry segments for the year ended December 31st: In conformity with the revenue test,Timm's reportable segments were

On March 15,20X7,Barrel Company paid property taxes of $120,000 on its factory building for calendar year 20X7.On July 1,20X7,Barrel made $20,000 in unanticipated repairs to its machinery.The repairs will benefit operations for the remainder of the calendar year.What total amount of these expenses should be included in Barrel's quarterly income statement for the three months ended September 30,20X7?

Wakefield Company uses a perpetual inventory system. In August, it sold 2,000 units from its LIFO-base inventory, which had originally cost $35 per unit. The replacement cost is expected to be $45 per unit. The company is planning to reduce its inventory and expects to replace only 1,500 of these units by December 31, the end of its fiscal year. The company replaced 1,500 units in November at an actual cost of $50 per unit. -Based on the preceding information,in the entry to record the replacement of the 1,500 units in November,Inventory will be debited for:

Which of the following are established by ASC 280 as "enterprisewide disclosure" standards to provide more information about the risks to a company? I.Information about dominant industry segments. II.Information about major customers. III.Information about geographic areas

In 20X6 and 20X7,each of Putney Company's four operating segments met one of the three quantitative tests for segment reporting.In 20X8,Segment B failed to qualify under the prescribed tests because of abnormal financial conditions.The other three segments qualified for reporting.For 20X8,Segment B:

On March 15,20X9,Clarion Company paid property taxes of $60,000 on its factory building for calendar year 20X9.On July 1,20X9,Clarion made $40,000 in unanticipated repairs to its machinery.The repairs will benefit operations for the remainder of the calendar year.What total amount of these expenses should be included in Clarion's quarterly income statement for the three months ended September 30,20X9?

Forge Company, a calendar-year entity, had 6,000 units in its beginning inventory for 20X8. On December 31, 20X7, the units had been adjusted down to $470 per unit from an actual cost of $510 per unit. It was the lower of cost or market. No additional units were purchased during 20X8. The following additional information is provided for 20X8: Forge does not have sufficient experience with the seasonal market for its inventory units and assumes that any reductions in market value during the year will be permanent. -Based on the preceding information,the cost of goods sold for the second quarter is:

During the third quarter of 20X4,Ripley Company sold a piece of equipment at a $10,000 gain.What portion of the gain should Ripley report in its income statement for the third quarter of 20X4?

FASB has specified a "75% percent consolidated revenue test". Required: a)What is the 75% test? b)How is the 75% test impacted by the "10% Significance Rule"?

An analysis of Abbey Company's operating segments provides the following information: -Refer to the above information.Which of the operating segments above meet the operating profit (loss)test?

Denver Company,a calendar-year corporation,had the following actual income before income tax expense and estimated effective annual income tax rates for the first three quarters in 20X8: Denver's income tax expense in its interim income statement for the third quarter should be:

All of the following are differences between international standards and U.S.GAAP regarding operating segments,except:

Trevor Company discloses supplementary operating segment information for its three reportable segments.Data for 20X8 are available as follows: Allocable costs for the year was $180,000.Allocable costs are assigned based on the ratio of a segment's income before allocable costs to total income before allocable costs.The 20X8 operating profit for Segment B was:

Iona Corporation is in the process of preparing its financial statements for the first quarter of 20X9 and has asked your advice as to how to report several items.These items include the following events which took place during the first quarter of 20X9 (assume all amounts are material): 1)Iona redeemed bonds with a carrying value of $4,000,000 at a cost of $3,760,000.This early extinguishment occurred because Iona wants to issue new debt at lower interest rates. 2)Iona uses the LIFO method for its inventories.On January 1,20X9,inventories amounted to $10,000,000,while,on March 31,20X9,inventories totaled $9,200,000.Iona expects to replace the liquidated inventory at the beginning of the second quarter at a cost of $1,000,000. 3)Iona changed its depreciation method on $4,000,000 of its delivery trucks from the declining balance method to the straight-line method.On January 1,20X9,accumulated depreciation under the declining balance method was $2,800,000.Had the straight-line method been used,accumulated depreciation on January 1,20X9,would have been $2,300,000.The remaining life of the trucks is two years. 4)Iona pays its top executives a bonus at year-end of 6 percent of operating income before bonus and income taxes.Operating income before bonus and income taxes for the three months ended March 31,20X9,was $10,000,000.Iona estimates that its yearly operating income before bonus and income taxes will be $60,000,000. 5)Iona closes its manufacturing operations in July of each year in order to make its major annual repairs.Iona estimates that the cost of these repairs in 20X9 will be $1,000,000. Required: For each of the events numbered 1 through 5,indicate how that event should be reported on Iona's income statement for the three months ended March 31,20X9,and the balance sheet accounts effects at March 31,20X9.Ignore income taxes. Problem 74 (continued):

Chicago Company,a calendar-year corporation,had the following actual income before income tax expense and estimated effective annual income tax rates for the first three quarters in 20X2: Chicago's income tax expense in its interim income statement for the third quarter should be

Forge Company, a calendar-year entity, had 6,000 units in its beginning inventory for 20X8. On December 31, 20X7, the units had been adjusted down to $470 per unit from an actual cost of $510 per unit. It was the lower of cost or market. No additional units were purchased during 20X8. The following additional information is provided for 20X8: Forge does not have sufficient experience with the seasonal market for its inventory units and assumes that any reductions in market value during the year will be permanent. -Based on the preceding information,the cost of goods sold for the year 20X8,is:

Collins Company reported consolidated revenue of $120,000,000 in 20X8.Collins operates in two geographic areas,domestic and Asia.The following information pertains to these two areas: What calculation below is correct to determine if the revenue test is satisfied for the Asian operations?

Estimated gross profit rates may be used to estimate a company's cost of goods sold and its ending inventory for:

Grum Corp.,a publicly-owned corporation,is subject to the requirements for segment reporting.In its income statement for the year ended December 31st,Grum reported consolidated revenues of $50,000,000,operating expenses of $47,000,000,and net income of $3,000,000.Operating expenses include payroll costs of $15,000,000.Grum's combined identifiable assets of all industry segments at December 31st,were $40,000,000.In its year-end financial statements,Grum would be most likely to disclose major customer data if sales to any single customer amounted to at least: