A company identified four industry segments as reportable out of a total of eight subunits of the company based on the identifiable asset criterion. Total company sales excluding intersegment sales are $2,000,000 for the year, and the sum of sales for the four identified segments is $1,300,000.
Given these facts, the company

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The identified segments must account for at least 75% of total company sales. Since the four segments account for only $1,300,000 out of $2,000,000 (65%), additional segments must be identified to meet the 75% threshold.

A Company Identified Four Industry Segments as Reportable Out of a Total