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Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately...

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Accounting

Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance.

It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows:

Plastics Metals Lumber Paper Finance
Sales to outside parties $ 6,370 $ 2,169 $ 646 $ 357 $ 0
Intersegment transfers 113 136 101 113 0
Interest income from outside parties 0 21 8 0 29
Interest income from intersegment loans 0 0 0 0 164
Operating expenses 3,954 1,632 936 589 18
Interest expense 63 18 53 30 89
Tangible assets 1,316 3,011 339 586 114
Intangible assets 74 366 0 50 0
Intersegment loans (debt) 0 0 0 0 669

Ecru does not allocate its $1,260,000 in common expenses to the various segments.

Perform testing procedures to determine Ecrus reportable operating segments.

a. Revenue test

b. Profit or loss test

c. Asset test

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