Exam 13: Segment and Interim Reporting

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 in August to record the sale of the 2,000 units:

Which of the following characteristics would render the operating unit "reportable"? The operating unit comprises at least:

Derby Company pays its executives a bonus of 6 percent of income before deducting the bonus and income taxes.For the quarter ended March 31,20X8,Derby had income before the bonus and income tax of $12,000,000.For the year ended December 31,20X8,Derby estimates that its income before bonus and income taxes will be $70,000,000.For the quarter ended March 31,20X8,what is the amount of the bonus that Derby should deduct on its income statement?

Fisher Company pays its executives a bonus of 4 percent of income before deducting the bonus and income taxes.For the quarter ended March 31,20X1,Fisher had income before the bonus and income tax of $10,000,000.For the year ended December 31,20X1,Fisher estimates that its income before bonus and income taxes will be $50,000,000.For the quarter ended March 31,20X1,what is the amount of the bonus that Fisher should deduct on its income statement?

The following information pertains to Aria Co.(Aria)and its operating segments for the year ended December 31,20X6: Sales to unaffiliated customers $2,000,000 Intersegment sales of products $600,000 Interest earned on loans to other industry segments $40,000 Aria and all its divisions are engaged solely in manufacturing operations.Aria evaluates divisional performance based on controllable contribution by segments.Aria has a reportable segment if that segment's revenue exceeds:

Trevor Company discloses supplementary operating segment information for its three reportable segments.Data for 20X8 are available as follows: Additional 20X8 expenses include indirect operating expenses of $200,000.Appropriately selected common indirect operating expenses are allocated to segments based on the ratio of each segment's sales to total sales.The 20X8 operating profit for Segment B was:

Tecumseh Co.(Tecumseh),a publicly owned corporation,assesses performance and makes operating decisions using the following information for its reportable segments: Total revenues $768,000 Total profit and loss $40,600 Included in the total profit and loss are intersegment profits of $6,100.In addition,Tecumseh has $500 of common costs for its reportable segments that are not allocated in reports used internally.For purposes of segment reporting,Tecumseh should report total combined segment profit of:

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 first quarter is:

Mason Company paid its annual property taxes of $240,000 on February 15,20X9.Mason also anticipates that its annual repairs expense for 20X9 will be $1,200,000.This amount is usually incurred and paid in July and August when operations are shut down so that machinery and equipment can be repaired.What amount should Mason deduct for property taxes and repairs in each quarter for 20X9?

Operand Corporation reported consolidated revenues of $30,000,000 on its income statement for 20X4.The management of the corporation identified three industry segments,X,Y,and Z.These segments had the following intersegment sales and transfers during 20X4: For Operand Corporation,the revenue test would be satisfied if any of its industry segments had revenue equal to or greater than which of the following?

Daniel Corporation,which has a fiscal year ending December 31,had the following pretax accounting income and estimated effective annual income tax rates for the first three quarters of the year ended December 31,20X6: Daniel's income tax expense in its interim income statement for the third quarter is

How would a company report a change in an accounting principle made on the last day of the third quarter?

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,Cost of Goods Sold will be debited for:

Cherokee Company reported consolidated revenue of $90,000,000 in 20X5.Cherokee operates in two geographic areas,domestic and Europe.The following information pertains to these two areas: What calculation below is correct to determine if the revenue test is satisfied for the European operations?

Tuttle Company discloses supplementary operating segment information for its three reportable segments.Data for 20X3 are available as follows: Additional 20X3 expenses include indirect operating expenses of $100,000.Appropriately selected common indirect operating expenses are allocated to segments based on the ratio of each segment's sales to total sales.The 20X3 operating profit for Segment A was

On June 30,20X8,String Corporation incurred a $220,000 net loss from disposal of a business component.Also,on June 30,20X8,String paid $60,000 for property taxes assessed for the calendar year 20X8.What amount of the preceding items should be included in the determination of String's net income or loss for the six-month interim period ended June 30,20X8?