Question: The Auto Corporation has internal reporting for four divisions The

The Auto Corporation has internal reporting for four divisions. The following data have been gathered for the year just ended.

1. Divisions A and B share production facilities. Joint product costs, depreciation, capital expenditures, and much of the identifiable assets are allocated one- third to Division A and the remainder to Division B.
2. Division C sells over 90% of its output to Division D on a cost- plus basis.
3. Unallocated corporate expenses not included above amount to $ 57,500.

1. From the preceding information, what are the operating segments that should be reported by the Auto Corporation? Explain your recommendation fully.
2. Prepare a schedule of supplementary financial information by segments, in accordance with IFRS 8 recommendations, based on the information provided above, together with a condensed consolidatedSCI.

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  • CreatedMarch 13, 2015
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