Falconhead Supply Had Three Operating Segments During 2010 In Addition, Falconhead Has Incurred $100, 000 of Common Expenses

Essay

Falconhead Supply had three operating segments during 2010.In determining whether these segments are considered reportable segments, Falconhead has gathered the following information:
$\begin{array}{llll}&\text { Segment }\\& \underline{\text {A}}& \underline{\text {B}}& \underline{\text {C}}\\\text { Revenues } & \$ 60,000 & \$ 80,000 & \$ 160,000 \\\text { Expenses } & 30,000 & 50,000 & 85,000 \\\text { Assets } & 200,000 & 180,000 & 420,000\end{array}$ In addition, Falconhead has incurred $100, 000 of common expenses that can be reasonably allocated to the three segments.Since most of the common costs relate to the physical operating capability of Falconhead, a reasonable allocation method is to allocate the common costs to each segment based on the ratio of a segment's assets to total assets of the three segments.
Required:
Compute the profit (loss)for each operating segment under current GAAP provisions.