The accountant for Baxter Corporation has assigned most of the company's assets to its three segments as follows:
The unassigned assets consist of $430,000 of unallocated goodwill and $270,000 of assets attached to the corporate headquarters. For internal decision-making purposes, goodwill is not assigned to the segments and the assets assigned to the corporate headquarters are allocated equally to the operating segments.
Required:
1. What is the proper threshold value to use in determining which of the operating segments shown above are reporting segments?
2. Which of the operating segments are considered reporting segments?

Question

The accountant for Baxter Corporation has assigned most of the company's assets to its three segments as follows:
  The unassigned assets consist of $430,000 of unallocated goodwill and $270,000 of assets attached to the corporate headquarters. For internal decision-making purposes, goodwill is not assigned to the segments and the assets assigned to the corporate headquarters are allocated equally to the operating segments.
Required:
1. What is the proper threshold value to use in determining which of the operating segments shown above are reporting segments?
2. Which of the operating segments are considered reporting segments?

Quizplus · Accepted Answer

The Answer of The accountant for Baxter Corporation has assigned most of the company's assets to its three segments as follows:
  The unassigned assets consist of $430,000 of unallocated goodwill and $270,000 of assets attached to the corporate headquarters. For internal decision-making purposes, goodwill is not assigned to the segments and the assets assigned to the corporate headquarters are allocated equally to the operating segments.
Required:
1. What is the proper threshold value to use in determining which of the operating segments shown above are reporting segments?
2. Which of the operating segments are considered reporting segments?

The Accountant for Baxter Corporation Has Assigned Most of the Company's