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Business, 21.03.2020 10:55 jasminechambers642

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 $ 1,822 $ 823 $ 525 $ 320 $ 132 $ 110
Intersegment revenues 27 102 120 0 27 313
Salary expense 625 390 413 323 328 73
Rent expense 150 177 92 103 53 42
Interest expense 76 70 93 60 25 16
Income tax expense (savings) 152 98 72 (97 ) (75 ) 0
Consider the following questions independently. None of the six segments has a primarily financial nature.

a. What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure?

b. If only Red, Blue, and Green necessitate separate disclosure, is Fairfield disclosing disaggregated data for enough segments?

c. What volume of revenues must a single customer generate to necessitate disclosing the existence of a major customer?

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

Red $ 1,085
Blue 460
Green 151
Pink (105 )
Black (233 )
White 319

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