. Falconhead Supply had three operating segments during 2010. In determining whether these segments are considered reportable segments, Falconhead has gathered the following information: Segment

. Falconhead Supply had three operating segments during 2010. In determining whether these segments are considered reportable segments, Falconhead has gathered the following information:

Segment

A B C

Revenues $ 60,000 $ 80,000 $160,000

Expenses 30,000 50,000 85,000

Assets 200,000 180,000 420,000

In addition, Falconhead has incurred $100,000 of common expenses that can be reasonably allocated to the three segments. A reasonable allocation method is to allocate the common costs to each segment based on the ratio of a segment’s assets to total assets of the three segments.

Required:

Compute the profit (loss) for each operating segment under current GAAP provisions.

Operating Segments

A B C

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