Answer:
Agnew Corp.
Agnew has a reportable segment if that segment's revenue exceeds
a. $462,000.
Explanation:
a) Data and Calculations:
Sales to unaffiliated customers $3,500,000
Intersegment sales of products similar to those sold to
unaffiliated customers 1,050,000
Interest earned on loans to other operating segments 70,000
Total entity income $4,620,000
Reportable segment = 10% of $4,620,000 = $462,000, which is more than
Intersegment sales and interest = $1,120,000 ($1,050,000 + $70,000)
