(Solved): Need a breakdown of how the answer was determined. 6. Faru Company identified five industry segments ...

6. Faru Company identified five industry segments: (1) plastics, (2) metals, (3) lumber, (4) paper, and (5) finance. The company properly consolidated the segments when it prepared its annual financial statements. Information describing each segment is presented below (in thousands). Required: Prepare the profit or loss test and determine which of these segments was separately reportable. Revenues include sales to outside parties, intersegment revenues transfers, and interest income. Expenses include operating expenses and interest expense.