_____ Palco has two reportable operating segments. For 2006, the following segment information is provided:
Assume that at the end of 2005 (the prior year-end), Segment A had $5,000 of unrealized intersegment profit and Segment B had $2,000 of unrealized intrasegment profit. The disclosed segment profitability amounts for 2006 would be reconciled to a corresponding consolidated profit of
A) $545,000
B) $552,000
C) $560,000
D) $562,000
E) $600,000

Question

_____ Palco has two reportable operating segments. For 2006, the following segment information is provided:
 Assume that at the end of 2005 (the prior year-end), Segment A had $5,000 of unrealized intersegment profit and Segment B had $2,000 of unrealized intrasegment profit. The disclosed segment profitability amounts for 2006 would be reconciled to a corresponding consolidated profit of
A) $545,000 
B) $552,000 
C) $560,000 
D) $562,000 
E) $600,000

Quizplus · Accepted Answer

Consolidated: $552,000 ($200,000 + $400,000 - $15,000 - $40,000 + $5,000 + $2,000)

_____ Palco Has Two Reportable Operating Segments