_____ Palco Has Two Reportable Operating Segments

Multiple Choice

_____ Palco has two reportable operating segments. For 2006, the following segment information is provided:
Assume that at the end of 2005 (the prior year-end) , Segment A had $5,000 of unrealized intersegment profit and Segment B had $2,000 of unrealized intrasegment profit. The disclosed segment profitability amounts for 2006 would be reconciled to a corresponding consolidated profit of

A) $545,000
B) $552,000
C) $560,000
D) $562,000
E) $600,000