Problem 10-14 (IAA) Congo Company does business in several different industries. The entity provided the following condensed income statement for the current year: Sales 60,000,000 Cost of goods sold (28,000,000) Gross income 32,000,000 Expenses (14,000,000) Depreciation ( 4,000,000) Income tax expense ( 4,000,000) Net income 10,000,000 The entity had two major reportable segments, X and Y. An analysis revealed that P1,000,000 of the total depreciation expense and P2,000,000 of the expenses are related to general corporate activities. The chief operating decision maker allocates income tax expense to reportable segments as a measure of profit or loss. The expenses and sales are directly allocable to segment activities according to the following percentages: Segment X Segment Y Others Sales 40% 45% 15% Cost of goods sold 35 50 15 Expenses 40 40 20 Depreciation 40 45 15 Income tax expense 50 40 10 Required: 1. Prepare a schedule that reports the segment profit or loss. 2. Prepare the disclosures required for operating segments. 3. Prepare the reconciliations between segment information and amounts shown in the entity's financial statements. 287