Collins Company reported consolidated revenue of $120,000,000 in 20X8.Collins operates in two geographic areas,domestic and Asia.The following information pertains to these two areas:
What calculation below is correct to determine if the revenue test is satisfied for the Asian operations?
A)$58,000,000/$140,000,000
B)$50,000,000/$120,000,000
C)$58,000,000/$120,000,000
D)$50,000,000/$140,000,000

Question

Quizplus · Accepted Answer

The revenue test is satisfied if the revenue from the Asian operations is at least 10% of the total consolidated revenue. The correct calculation is $50,000,000 (Asian operations revenue) divided by $120,000,000 (total consolidated revenue).

Collins Company Reported Consolidated Revenue of $120,000,000 in 20X8