Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?
A) $1,670,000.
B) $12,525,000.
C) $15,487,500.
D) $16,700,000.
E) $20,650,000.

Question

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses:  When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?
A) $1,670,000. 
B) $12,525,000. 
C) $15,487,500. 
D) $16,700,000. 
E) $20,650,000.

Quizplus · Accepted Answer

External Rev $16,700,000 × .75 = $12,525,000