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1. The following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands):

	Segments
	Red				Blue				Green				Pink				Black				White
Sales to outside parties	$	1,835			$	836			$	538			$	333			$	145			$	123
Intersegment revenues		40				115				133				0				40				326
Salary expense		638				403				426				336				341				86
Rent expense		163				190				105				116				66				55
Interest expense		89				83				106				73				38				29
Income tax expense (savings)		165				111				85				(110	)			(88	)			0

Consider the following questions independently. None of the six segments have a primarily financial nature.

Problem 8-36 Part a

a. What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure? (Enter your answer in dollars but not in thousands.)

2. The following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands):

	Segments
	Red				Blue				Green				Pink				Black				White
Sales to outside parties	$	1,835			$	836			$	538			$	333			$	145			$	123
Intersegment revenues		40				115				133				0				40				326
Salary expense		638				403				426				336				341				86
Rent expense		163				190				105				116				66				55
Interest expense		89				83				106				73				38				29
Income tax expense (savings)		165				111				85				(110	)			(88	)			0

Consider the following questions independently. None of the six segments have a primarily financial nature.

Problem 8-36 Part d

d. Now assume each of these six segments has a profit or loss (in thousands) as follows, which warrants separate disclosure? (Select all that apply.)

Segment	Profit (Loss)
Red	$	1,098
Blue		473
Green		164
Pink		(118	)
Black		(246	)
White		332

Check All That Apply

Red

Red

Blue

Blue

Green

Green

Pink

Pink

Black

Black

White

White

3. Mason Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified.

	Company Total				Books				Computers				Maps				Travel				Finance
Sales to outside parties	$	1,693			$	174			$	737			$	442			$	340			$	0
Intersegment sales		529				38				280				53				158				0
Interest incomeexternal		131				80				0				0				0				51
Interest incomeintersegment loans		161				0				0				0				0				161
Assets		3,636				246				1,449				288				343				1,310
Operating expenses		1,526				129				858				288				204				47
Expensesintersegment sales		254				84				65				45				60				0
Interest expenseexternal		121				0				0				0				0				121
Interest expenseintersegment loans		203				35				85				52				31				0
Income tax expense (savings)		115				52				(27	)			67				71				(48	)
General corporate expenses		95
Unallocated operating costs		120

Determine the reportable segments by performing each applicable test. (Figures are in thousands.)

Revenue test:

Profit or loss test:

Asset test:

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