The following information pertains to revenue earned by Wig Company’s operating segments for the year ended December 31, 2011:
|
Segment |
Sales to Unaffiliated Customers |
Intersegment Sales |
Total Revenues |
|
Ames |
$ 10,000 |
$ 6,000 |
$ 16,000 |
|
Beck |
16,000 |
8,000 |
24,000 |
|
Cyns |
8,000 |
— |
8,000 |
|
DG |
86,000 |
32,000 |
118,000 |
|
Combined |
120,000 |
46,000 |
166,000 |
|
Elimination |
— |
(46,000) |
(46,000 ) |
|
Consolidated |
$120,000 |
— |
$120,000 |
In conformity with the revenue test, Wig reportable segments were:
a Only DG
b Beck and DG
c Ames, Beck, and DG
d Ames, Beck, Cyns, and DG
Use the following information in answering questions 5 and 6: Gum Corporation, a publicly owned corporation, is subject to the requirements for segment reporting. In its income statement for the year ended December 31, 2011, Gum reported revenues of $50,000,000, operating expenses of $47,000,000, and net payroll costs of $15,000,000. Gum’s combined identifiable assets of all industry segments at December 31, 2011, were $40,000,000.