Grum Company, a public entity, is subject to the requirments of segment reporting.

In the
income statement for the year ended December 31, 2013, the entity reported revenue of
50,000,000 excluding intersegment sales pf 10,000,000, expenses of 47,000,000 and net income
of 3,000,000. Expenses included payroll costs of 15,000,000. The combined total assets of all
operating segments on December 31, 2012 amounted 45,000,000.

What total amount should be reported as segment revenue for purposes of reporting segment
information?

a. 50,000,000
b. 60,000,000
c. 40,000,000
d. 3,000,000

In the Financial Statements, the entity should disclose major customer data if sales to any single
customer amount to at least

a. 5,000,000
b. 4,000,000
c. 6,000,000
d. 4,500,000

External revenue reported by operating segments must be at least

a. 22,500,000
b. 30,000,000
c. 33,750,000
d. 37,500,000

Eagle Company operates in several different industries. Total sales for the entity totaled 14,000,000 and
total common costs amounted to 6,500,000 for the current year. For internal reporting purposes, the
entity allocates common costs based on the ratio of a segment’s sales to total sales. Additional
information regarding the different segments follows:

Segment Contribution to total sales Costs specific to the segment

1 25% 1,100,000

2 12% 1,000,000

3 31% 1,300,000

4 23% 880,000

5 9% 400,000

What is the operating profit?

 a. 3,500,000
b. 1,875,000
c. 2,400,000
d. 775,000

Taylor Company, a public entity, assesses performance and makes operating decisions using the
following information for the reportable segments:

Total Revenue: 7,680,000

Total Profit and Loss: 406,000

The total profit and loss included intersegment profit of 61,000. In addition, the entity has 5,000
of common costs for the reportable segments that are not allocated in reports provided to the
chief operating decision maker. For purposes of segment reporting, what amount should be
reported as segment profit?

a. 340,000
b. 345,000
c. 401,000
d. 406,000

On March 15, 2013, Rex Company paid property taxes of 180,000 on the factory building for
calendar year 2013. On April 1, 2013, the entity made 300,000 in unanticipated ordinary repairs
to plant equipment. What total amount of these expenses should be included in the quarterly
income statement ending June 30, 2013?

a. 75,000
b. 145,000
c. 195,000
d. 345,000

The terms and conditions of employment with Pauline Company include entitlement to share in the staff
bonus system, under which 5% of the profit for the year before charging the bonus is allocated to the
bonus pool, provided the annual profit exceeds 50,000,000. The profit before accrual of any bonus for
the year as a whole is 60,000,000. What amount should be recognized as bonus expense for the half
year ended June 30, 2013?

a. 1,500,000
b. 3,000,000
c. 2,000,000
d. 0
On July 1, 2013 Dolor Company incurred a casualty loss of 300,000. The net income for the full year
ending December 31, 2013 is expected to be 5,000,000. In the income statement for the quarter ended
September 30, 2013, what amount of casualty loss should be reported?

a. 300,000
b. 150,000
c. 75,000
d. 0