Murphy Oils, Inc., began as a distributor of oils and lubricants to auto and truck repair centers. Since that time, the company has expanded to include jet engine repairs, the wholesale distribution of specialized tools for the automotive repair industry, and truck leasing. Various annual revenues, pretax profits or losses, and assets for each of these areas are as follows:

1. If two of the above areas had to be combined into a separate segment, explain which two would be likely candidates.
2. If the chief operating decision maker had defined segments around the four separate areas, indicate which of the areas would qualify as a reportable segment.
3. If pretax profits for the entire company were approximately $4.9 million, identify four items that would likely comprise the reconciliation of total reportable segment amounts to companywide totals.

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Oils and Lubricants Jet Engine Repair Specialized Tools ruc easing Revenues: External $2,750,00 $16,200,000 $7,640,000 $1,500,000 750,000 605,000 . ..1,650,000 1,350,000 993,200 (530,000) 4,800,000 Intersegment. .. 560,000 2,916,000 24,300,000 ,910,000