An Entity Is Permitted to Aggregate Operating Segments That Have

Multiple Choice

An entity is permitted to aggregate operating segments that have similar economic characteristics under certain circumstances. Which of the following circumstances would allow aggregation of Entity A into Segment B?

A) Entity A is expected to be included in Segment Z, a new segment, in future periods.
B) Entity A was spun off from Entity C and is now owned directly by the parent entity.
C) Entity A has recently filed bankruptcy and will be liquidated.
D) Segment B consists of retail and wholesale operations and Entity A was primarily a retail establishment but is now engaged primarily in rendering services to the parent entity.