11) Krull Corporation is preparing its interim financial statements for the third quarter of calendar 2024.

The following trial balance information is available for third quarter:

Account Debit Credit

Cash $98,000
Accounts Receivable 285,000
Inventory 750,000
Fixed assets 600,000
Accounts Payable $300,000
Common Stock 50,000
Retained Earnings 80,000
Sales 4,400,000
Administrative expense 312,000
Cost of goods sold 2,650,000
Loss on sale of securities sold on July 30 75,000
Annual equipment overhaul costs paid on August 1 60,000
Totals $4,830,000 $4,830,000

Additional information
At the end of the year, Krull distributes annual employee bonuses and charitable donations that are estimated
at $40,000, and $12,000, respectively. The cost of goods sold includes the liquidation of a $45,000 base layer in
inventory that Krull will restore in the fourth quarter at a cost of $75,000. Effective corporate tax rate for 2024 is
32%.

Required:
Prepare Krull's interim income statement for the third quarter of calendar 2024.

12) Leotronix Corporation estimates its income by calendar quarter as follows for 2024:

1st 2nd 3rd 4th 2024

Quarter Quarter Quarter Quarter Total
Est. Income $30,000 $40,000 $40,000 $50,000 $160,000

Income tax rates applicable to Leotronix:

From: $ 0 to $50,000 15%
From: $50,001 to $75,000 25%
Over: $75,000 35%

Required:
Determine Leotronix's estimated effective tax rate.

13) Maxtil Corporation estimates its income by calendar quarter as follows for 2024:

1st 2nd 3rd 4th 2024

Quarter Quarter Quarter Quarter Total
Est. Income $40,000 $30,000 $20,000 $20,000 $110,000

Income tax rates applicable to Maxtil:

From: $0 to $50,000 15%
From: $50,001 to $75,000 25%
Over: $75,000 35%

Required:
Determine Maxtil's estimated effective tax rate.
14) Nettle Corporation is preparing its first quarterly interim report. It is subject to a corporate income tax rate
of 20% on the first $50,000 of taxable income and 35% on taxable income above $50,000. Its estimated pretax
accounting income for 2014, by quarter, is:
 1st 2nd 3rd 4th 2024
Quarter Quarter Quarter Quarter Total
Est. Income $75,000 $165,000 $143,000 $120,000 $503,000

Nettle expects to earn and receive operating income for the year and does not contemplate any changes in
accounting procedures or principles that would affect its pretax accounting income.

Required:
1. Determine Nettle's estimated effective tax rate for 2024.

2. Prepare a schedule to show Nettle's estimated net income for each quarter of 2024.

15) Osprin Corporation has three operating segments, as summarized below:

Capsule Pill Liquid Total

Sales to retailers 25,000 35,000 5,000 65,000
Intersegment sales 4,000 10,000 2,000 16,000
Operating
Expenses 10,000 18,000 5,000 33,000
Interest Expense 2,000 3,000 1,000 6,000
Income Tax
Expense 4,000 6,000 1,000 11,000
Assets 12,000 3,000 16,000 31,000

Required:
1. Using the revenue test, what is the minimum amount of revenue of a reportable segment?

2. Using the operating profit or loss test, what is the minimum amount of operating profit or loss of a
reportable segment?

3. Using the asset test, what is the minimum amount of assets of a reportable segment?

4. Based on the three tests, which segments will be separately reported?

17) Quantex Corporation has five operating segments, as summarized below:

Household Industrial Packaging Storage Services

Sales to outside
entities 700,000 4,300,000 400,000 1,700,000 100,000
Intersegment
sales 50,000 600,000 800,000 200,000 -0-
Cost of goods
sold 300,000 2,700,000 700,000 900,000 -0-
Operating
Expenses 200,000 1,300,000 200,000 600,000 30,000
Interest Expense 10,000 40,000 5,000 -0- -0-
Income Tax
Expense 60,000 210,000 70,000 100,000 18,000
Assets 540,000 1,900,000 1,600,000 70,000 32,000

Required:
Determine which of the operating segments of Quantex Corporation are reportable segments for the period
shown.
18) Rollins Publishing has five operating segments, as summarized below:

Fiction Non-fiction Reference Childrens Periodicals

Sales to outside
entities 870,000 416,000 796,000 236,000 517,000
Intersegment
sales -0- -0- 80,000 -0- 50,000
Cost of goods
sold 430,000 270,000 290,000 65,000 420,000
Operating
Expenses 120,000 89,000 95,000 74,000 238,000
Interest Expense -0- 61,000 -0- -0- 24,000
Income Tax
Expense 80,000 (1,000) 120,000 24,000 (28,000)
Assets 22,000 24,000 29,000 16,000 100,000

Required:
Determine which of the operating segments of Rollins Publishing are reportable segments for the period
shown.

19) Snodberry Catering has five operating segments, as summarized below:

Wait Bar
Buffet Alcohol Bakery Service Service
Sales to outside
entities 26,000 110,000 22,000 24,000 5,000
Intersegment sales -0- 20,000 4,000 -0- 56,000
Cost of goods sold 16,000 50,000 19,000 23,000 69,000
Operating Expenses 9,000 70,000 6,000 2,000 4,000
Interest Expense -0- 5,000 -0- 2,000 1,000
Income Tax Expense -0- 2,000 -0- -0- (3,000)
Assets 2,000 22,000 2,000 1,000 1,000

Required:
Determine which of the operating segments of Snodberry Catering are reportable segments for the period
shown.

20) Tillman Fabrications has five operating segments, as summarized below:

Wood Plastic Metal Paper Fabric

Sales to outside entities 5,200,000 1,200,000 7,800,000 1,600,000 6,300,000
Intersegment sales 390,000 4,700,000 -0- -0- 750,000
Operating Profit (520,000) (590,000) 1,700,000 190,000 (960,000)
Assets 690,000 450,000 880,000 280,000 760,000

Required:
Determine which of the operating segments of Tillman Fabrications are reportable segments for the period
shown.