Nauman Company has the following information pertaining to its two divisions for last year:

Common expenses are $24,000 for the year.

What is the income for Nauman Company?
A) $65,000
B) $325,000
C) $300,000
D) $41,000

Question

Nauman Company has the following information pertaining to its two divisions for last year: 
   
Common expenses are $24,000 for the year.

What is the income for Nauman Company?
A) $65,000 
B) $325,000 
C) $300,000 
D) $41,000

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
Segment income for Y: $400,000 - $90,000 - $100,000 - $70,000 - $100,000 = $40,000
Segment income for X: $200,000 - $70,000 - $35,000 - $30,000 - $40,000 = $25,000
Income for Nauman Company = $25,000 + $40,000 - $24,000 = $41,000

Nauman Company Has the Following Information Pertaining to Its Two