Lechon Company provided the following data for the current year: Sales Cost of goods sold Expenses Depreciation Income tax expense The entity has two major reportable segments, A and B. An analysis revealed that P1,000,000 of the total depreciation expense and P2,000,000 of the expenses are related to general corporate activities. The remaining expenses and sales are directly allocable to segment activities according to the following percentages: Sales Cost of goods sold Expenses Depreciation P60,000,000 28,000,000 14,000,000 4,000,000 4,000,000 Segment A 40% 35 40 40 Segment B 45% Others 15% 15 20 15 50 40 45 What amount should be reported as net income of Segment A?
Lechon Company provided the following data for the current year: Sales Cost of goods sold Expenses Depreciation Income tax expense The entity has two major reportable segments, A and B. An analysis revealed that P1,000,000 of the total depreciation expense and P2,000,000 of the expenses are related to general corporate activities. The remaining expenses and sales are directly allocable to segment activities according to the following percentages: Sales Cost of goods sold Expenses Depreciation P60,000,000 28,000,000 14,000,000 4,000,000 4,000,000 Segment A 40% 35 40 40 Segment B 45% Others 15% 15 20 15 50 40 45 What amount should be reported as net income of Segment A?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.1E
Related questions
Question
![Lechon Company provided the following data for the current year:
Sales
Cost of goods sold
Expenses
Depreciation
Income tax expense
The entity has two major reportable segments, A and B. An analysis revealed that
P1,000,000 of the total depreciation expense and P2,000,000 of the expenses are related
to general corporate activities.
The remaining expenses and sales are directly allocable to segment activities according
to the following percentages:
Sales
Cost of goods sold
Expenses
Depreciation
P60,000,000
28,000,000
14,000,000
4,000,000
4,000,000
Segment A
40%
35
40
40
Segment B
45%
Others
15%
15
20
15
50
40
45
What amount should be reported as net income of Segment A?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F02ab07dd-6126-4d33-8be1-aa11504cd311%2Fddab42e9-7aeb-42f2-b61b-afa71616bebf%2Fwglone8_processed.png&w=3840&q=75)
Transcribed Image Text:Lechon Company provided the following data for the current year:
Sales
Cost of goods sold
Expenses
Depreciation
Income tax expense
The entity has two major reportable segments, A and B. An analysis revealed that
P1,000,000 of the total depreciation expense and P2,000,000 of the expenses are related
to general corporate activities.
The remaining expenses and sales are directly allocable to segment activities according
to the following percentages:
Sales
Cost of goods sold
Expenses
Depreciation
P60,000,000
28,000,000
14,000,000
4,000,000
4,000,000
Segment A
40%
35
40
40
Segment B
45%
Others
15%
15
20
15
50
40
45
What amount should be reported as net income of Segment A?
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