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Ansfield, Inc The Minimum Amount of Profit or Loss a Segment Must

Question 11

Multiple Choice

Ansfield, Inc.has several potentially reportable segments.The following financial information has been determined for the current fiscal year: ?

 Consolidated net income $1,000,000 Operating income before taxes 1,500,000 Net operating income of all segments 1,350,000 Total consolidated revenue 8,000,000 Total revenue of all segments,  excluding intersegment sales 7,000,000 Total intersegment sales 1,200,000 Consolidated total assets 50,000,000 Total assets of all segments 45,000,000\begin{array} { l r } \text { Consolidated net income } & \$ 1,000,000 \\\text { Operating income before taxes } & 1,500,000 \\\text { Net operating income of all segments } & 1,350,000 \\\text { Total consolidated revenue } & 8,000,000 \\\text { Total revenue of all segments, } & \\\text { excluding intersegment sales } & 7,000,000 \\\text { Total intersegment sales } & 1,200,000 \\\text { Consolidated total assets } & 50,000,000 \\\text { Total assets of all segments } & 45,000,000\end{array} The minimum amount of profit or loss a segment must have to qualify as reported is ____.


A) $100,000
B) $135,000
C) $150,000
D) The answer cannot be determined from the information given.

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