Cineplex Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021.

Sales of segments B and C included intersegment sales of $20,000 and $100,000, respectively.

Instructions

a. Determine which of the segments are reportable based on the:

1. Revenue test.

2. Operating profit (loss) test.

3. Identifiable assets test.

b. Prepare the necessary disclosures required by GAAP.

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A D Sales revenue Cost of goods sold Operating expenses Total expenses Operating profit (loss) Identifiable assets $40,000 $ 75,000 50,000 40,000 $580,000 270,000 $35,000 $55,000 30,000 19,000 10,000 19,000 235,000 12,000 18,000 29,000 48,000 31,000 90,000 505,000 $(15,000) $ 75,000 $ 7,000 $11,000 $ 4,000 $35,000 $ 80,000 $500,000 $65,000 $50,000