Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Sales to outside parties: Intersegment transfers. Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets. Intersegment loans (debt) Plastics $ 6,415 118 a. Revenue test: b. Profit or loss test: c. Asset test: 0 0 3,994 65 1,340 76 0 Metals $ 2,194 141 23 0 1,652 20 3,036 371 0 Lumber 656 106 10 0 956 55 364 0 Ecru does not allocate its $1,270,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's reportable operating segments. Paper $367 118 0 0 599 29 611 52 0 Finance $ 0 0 31 169 20 91 124 0 674 Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Sales to outside parties: Intersegment transfers. Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets. Intersegment loans (debt) Plastics $ 6,415 118 a. Revenue test: b. Profit or loss test: c. Asset test: 0 0 3,994 65 1,340 76 0 Metals $ 2,194 141 23 0 1,652 20 3,036 371 0 Lumber 656 106 10 0 956 55 364 0 Ecru does not allocate its $1,270,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's reportable operating segments. Paper $367 118 0 0 599 29 611 52 0 Finance $ 0 0 31 169 20 91 124 0 674
Expert Answer:
Answer rating: 100% (QA)
To determine Ecrus reportable operating segments we need to perform three tests as per the guidelines of accounting standard ASC 280 Segment Reporting The three tests are as follows a Revenue Test The ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these accounting questions
-
Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements....
-
Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements....
-
Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements....
-
Assume that self-esteem measurements are not affected by an interaction between subject self-esteem and target self-esteem. Is there sufficient evidence to support the claim that the category of the...
-
What is a revocable split-interest agreement and how is it recorded by a private college?
-
You are working on a project involving the analysis of JHH Software, a (hypothetical) software development company that established technical feasibility for its first product in 2007. Part of your...
-
Discuss the sampling strategy and technique to be used. Develop a hypothetical research scenario that would necessitate the use of the Action Research Approach and a Posttest With a Historical...
-
The following data were taken from the records of Clarkson Manufacturing Company for the fiscal year ended June 30, 2012. Instructions (a) Prepare a cost of goods manufactured schedule. (Assume all...
-
What is Data Manipulation Language in SQL ? What are the Benefits of DML? What is DML command with example?
-
This problem continues the Draper Consulting, Inc., situation from Problem 2-62 of Chapter 2. Start from the trial balance and the posted T-accounts that Draper Consulting, Inc., prepared at December...
-
You are a networking technician in a radiology clinic, wherephysicians use the network to transmit and store patients'diagnostic results. Shortly after a new wing, which contains X-rayand magnetic...
-
Suppose an acquirer is buying a target for a price of 3 0 B for the equity of the target. The target has no cash and 1 0 B in debt. The acquirer currently has debt equal to 2 0 B . The acquirer is...
-
Please consider someone that you know in a leadership role and discuss whether they are a manager or leader based on the ideas highlighted by John Kotter in an article entitled What Leaders Really...
-
Compare LLPs to general partnerships. Why would you choose to form a limited liability partnership (LLP) instead of a general partnership? How are they different? Is an LLP a limited partnership, or...
-
1) Write a paragraph the potential reasons for choosing a hub versus a switch, whether it be cost, speed, security or other. 2) What might prevent wireless technology from being used extensively in...
-
In general partnerships, every partner has the statutory right to participate in the management of the partnership. a. Why do you think limited partners are prohibited in the management of the...
-
If Ood Genuine Ale decided to move to a relative price index of 95% with no change in their dollar sales, what would their Average Price Per Unit, their Total Units Sold and Unit Market Share be?...
-
On April 29, 2015, Auk Corporation acquires 100% of the outstanding stock of Amazon Corporation (E & P of $750,000) for $1.2 million. Amazon has assets with a fair market value of $1.4 million (basis...
-
What are the four classifications of nonexchange revenues that a state or local government can recognize? In each case, when are revenues normally recognized?
-
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2012: On January 1, 2012, Penske acquired all of Stanzas outstanding stock for $680,000 fair...
-
Read the following as well as any other published articles on the bankruptcy of the partnership of Laventhol & Horwath: Laventhol Says It Plans to File for Chapter 11, The Wall Street Journal,...
-
10.A company contracted with a marketing firm to construct software and create a business website. A quote was requested and accepted. Sometime later, the business asked for updates and revisions but...
-
George Oppenheimer, an agent for Wellington Farms of Massachusetts, Inc., had contacted Mark Kiriakou from the Capital Area Food Bank regarding an order for frozen turkey meat. In an exchange of...
-
Extreme Machine manufactures machines and parts for various industries; they have an office in Youngstown, Ohio. Avery Dennison manufactures and sells labels from a plant in Mentor, Ohio. They use...
Study smarter with the SolutionInn App