Apply threshold tests—disclosure
Vic Corporation operates entirely in the United States but in different industries. It segments the business based on industry. Total sales of the segments, including intersegment sales, are as follows:
|
Concrete and stone products |
$ 400,000 |
|
Construction |
1,000,000 |
|
Lumber and wood products |
1,800,000 |
|
Building materials |
1,000,000 |
|
Other |
100,000 |
|
Further analysis reveals sales from one segment to another as follows: |
|
|
Lumber and wood products |
$800,000 |
|
Building materials |
400,000 |
REQUIRED
1. Determine which segments are reportable segments under both the 10 percent and the 75 percent revenue tests.
2. Prepare a schedule suitable for disclosing revenue by industry segment for external reporting.
3. Prepare a reconciliation of segment revenue with corporate revenue.