Determine which of the segments are reportable

P24-2 (Segmented Reporting) Cineplex Corporation is a diversified company that operates in five different

industries: A, B, C, D, and E. The following information relating to each segment is available for 2015.

A B C D E

Sales revenue $40,000 $ 75,000 $580,000 $35,000 $55,000

Cost of goods sold 19,000 50,000 270,000 19,000 30,000

Operating expenses 10,000 40,000 235,000 12,000 18,000

Total expenses 29,000 90,000 505,000 31,000 48,000

Operating profi t (loss) $11,000 $ (15,000) $ 75,000 $ 4,000 $ 7,000

Identifi able assets $35,000 $ 80,000 $500,000 $65,000 $50,000

Sales of segments B and C included intersegment sales of $20,000 and $100,000, respectively.

Instructions

(a) Determine which of the segments are reportable based on the:

(1) Revenue test.

(2) Operating profit (loss) test.

(3) Identifiable assets test.

(b) Prepare the necessary disclosures required by GAAP.