8) The following data relate to Elle Corporation's industry segments. (Elle HQ represents the corporate headquarters). All other segments are geographical sales segments.
AttributeEuropeRussiaChinaJapanElle HQ
External sales$35,000$24,000$33,000$0$0
Intersegment
Sales2,0001,0004,00000
Expenses27,00018,00029,0005,00012,000
Assets assigned20,00022,00030,00014,00015,000
Income from
Equity investee5,000
Required:
1. Prepare a report which reconciles the reportable segment profits to total consolidated profits assuming that corporate expenses are not allocated to the operating segments.
2. Prepare a report which reconciles the reportable segment profits to total consolidated profits assuming that corporate expenses are allocated evenly among the operating segments.
