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.

P24.2 (LO 2) (Segmented Reporting) 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. B D E Sales $40,000 $580,000 $35,000 $55,000 revenue 75,000 19,000 50,000 270,000 19,000 30,000 10,000 40,000 235,000 12,000 18,000 29,000 90,000 505,000 31,000 48,000 Cost of goods sold Operating expenses Total expenses Operating profit (loss) Identifiable assets $11,000 $(15,000) $ 75,000 $ 4,000 $ 7,000 $35,000 $500,000 $65,000 $50,000 80,000 Sales of segments B and C included intersegment sales of $20,000 and $100,000, respectively