ex 23 40 segmented reporting tangerine corporation 39 s most recent condensed income 4314443

ex 23 40 segmented reporting tangerine corporation 39 s most recent condensed income 4314443

Ex. 23-40Segmented reporting

Tangerine Corporation's most recent (condensed) income statement is presented below:

Revenues………………………………………$2,500,000

Expenses

Cost of goods sold……………………………..$1,000,000

Operating and administrative expenses………………500,000

Depreciation expense………………………….. 100,000 1,600,000

Income before taxes……………………………….900,000

Income tax expense………………………………. 270,000

Net income……………………………………..$ 630,000

Earnings per share (100,000 shares)……………………$6.30

The following data relates to Tangerine's operating segments:

Percent Identified with Segment

HotelsGrainsCandy

Revenues42%50%8%

Cost of goods sold48493

Operating and administrative expenses355015

Depreciation expense464212

Included in the amounts allocated to each segment on the above percentages are the following expenses, which relate to general corporate activities:

    Operating Segment     

Hotels Grains Candy Totals

Operating and administrative expenses$30,000$22,000$8,000$60,000

Depreciation expense4,0005,0003,00012,000

Instructions

(Assume that the corporation adheres to IFRS)

a) Prepare a schedule showing the amounts distributed to each segment.

b) Based only on the above information, which segments must be reported and why?

 

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