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Question;45. Ridge Company is in the process of determining its;reportable segments for the year ended December 31, 2008. As the person;responsible for determining this information, you gather the following;information;Required;a) Using the appropriate tests, determine which of the industry segments listed;above are reportable for 2008. Show your supporting computations in good form.;b) Indicate whether or not Ridge's reportable segments satisfy the 75 percent;test. Show your supporting computations in good form.;46. Lloyd Corporation reports the following information;for 2008 for its three operating segments;Indirect operating expenses are allocated to segments based upon the ratio of;each segment's traceable operating expenses to total traceable operating;expenses. Interest expense is allocated to segments based upon the ratio of;each segment's sales to total sales.;Required;a) Calculate the operating profit or loss for each of the segments for 2008.;b) Determine which segments are reportable, applying the operating profit or;loss test.;47. The information below is for the second quarter of;Tampa Company for 2008;Required;Prepare an interim income statement for the second quarter for Tampa Company.;Assume the LIFO liquidation is expected to be restored by the end of;2008.;48. FASB 131, Disclosure about Segments of an;Enterprise and Related Information, has taken what has been referred to as a;management approach" to the definition of a segment and the;allocation of costs to a segment.;Required;a) What is meant by a management approach? How does this concept of a;management approach impact the decision to disclose information?;b) How are decisions about cost allocation handled in segment;disclosures?;49. FASB has specified a "75% percent;consolidated revenue test".;Required;a) What is the 75% test?;b) How is the 75% test impacted by the "10% Significance Rule"?;50. Interim income statements are required for Smith;Orchards. Smith does most of its sales in the fall quarter of the year. These;sales are both to individual and commercial customers. How do you recommend;Smith report sales during the spring quarter of the year?


Paper#44961 | Written in 18-Jul-2015

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