_____ Paxco 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 $4,000 of unrealized intrasegment profit and Segment B had $20,000 of unrealized intersegment profit. The disclosed segment profitability amounts for 2006 would be reconciled to a corresponding consolidated profit of
A) $804,000
B) $820,000
C) $840,000
D) $844,000
E) $874,000

Question

_____ Paxco 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 $4,000 of unrealized intrasegment profit and Segment B had $20,000 of unrealized intersegment profit. The disclosed segment profitability amounts for 2006 would be reconciled to a corresponding consolidated profit of
A) $804,000 
B) $820,000 
C) $840,000 
D) $844,000 
E) $874,000

Quizplus · Accepted Answer

Consolidated: $844,000 ($600,000 + $300,000 - $50,000 - $30,000 + $4,000 + $20,000)

_____ Paxco Has Two Reportable Operating Segments