discloses supplemental Spein Company segments. The following information is available for 2019: company nancial inIormation on its Traceable Costs $225,000 240,000 135.000 $600,000 Allocable Costs Segment X Segment Y Segment Z Totals Sales $400,000 300,000 200.000 $900,000 $150,000

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 35P: In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing...
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Spein Company is a diversified company that discloses supplemental financial information on its
segments. The following information is available for 2019:
Traceable Costs
$225,000
240,000
Allocable Costs
Segment X
Segment Y
Segment Z
Totals
Sales
$400,000
300,000
200.000
135.000
$900,000
$600,000
$150,000
{5 }
Allocable costs are assigned based on the ratio of a segment's income before allocable costs to total
income before allocable costs. This is an appropriate method of allocation. Segment Y's profit for 2019
is
A. 32,400 Small; 8,100 Medium; 1,620 Large
B. 34,808 Small; 8,700 Medium; 1,740 Large
C. 37,010 Small; 9,250 Medium; 1,850 Large
D. 38,505 Small; 9,625 Medium; 1,925 Large
Transcribed Image Text:Spein Company is a diversified company that discloses supplemental financial information on its segments. The following information is available for 2019: Traceable Costs $225,000 240,000 Allocable Costs Segment X Segment Y Segment Z Totals Sales $400,000 300,000 200.000 135.000 $900,000 $600,000 $150,000 {5 } Allocable costs are assigned based on the ratio of a segment's income before allocable costs to total income before allocable costs. This is an appropriate method of allocation. Segment Y's profit for 2019 is A. 32,400 Small; 8,100 Medium; 1,620 Large B. 34,808 Small; 8,700 Medium; 1,740 Large C. 37,010 Small; 9,250 Medium; 1,850 Large D. 38,505 Small; 9,625 Medium; 1,925 Large
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