Question: Jane Baldwin Anderson Flooring s accounting intern has prepared the following

Jane Baldwin, Anderson Flooring's accounting intern, has prepared the following income statement for the month of June. In preparing the income statement, Jane was unsure what to do with $250,000 in corporate fixed expenses that cannot be traced to a particular division. Since these costs were incurred to run the business as a whole, and she believed that each division benefited equally, she just allocated half to each division.


Required
a. How do you think Jane should have handled the $250,000 in corporate fixed expenses?
b. Prepare a segment margin income statement that highlights each division's contribution to corporateprofits.
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  • CreatedFebruary 21, 2014
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