Question Completion:
The Canton Corporation operates in four distinct business segments. The segments, along with 2011 information on revenues, assets and net income, are listed below ($ in millions):
Segment Revenue Assets Net Income
Pharmaceuticals $2,000 $1,000 $200
Plastics 3,000 1,500 270
Farm Equipment 2,500 1,250 320
Electronics 500 250 40
Total company $8,000 $4,000 $830
Required: 1. For which segments must Canton report supplementary information according to U.S. GAAP?
Answer:
The Canton Corporation
The segment that Canton Corporation must report supplementary information according to U.S. GAAP is the Farm Equipment segment. It is quite different from the other three segments.
Explanation:
Canton Corporation will report supplementary information for the Farm Equipment segment. This supplementary information will differ from others as the required information is considered to be an essential part of the financial reporting of an entity like Canton Corporation that is operating in four distinct and unrelated business segments.
