Answer:
$ 250,000
Explanation:
According to GAAP, to pass the revenue test for qualifying as a reportable segment, a segment must have at least 10% of the total revenue generated from all the segments.
"Interest earned on loans" is classified as a part of "Other Income" unless the business primarily generates income from interests, for example, a bank, in such cases, it is part of "Income from Operations".
"Gain or loss on discontinued operations" is a line item that is stated separately below income from continuing operations.
Hence, both of these items are not part of the revenue generated by the segments. So to calculate the total revenue generated by the segments we will only consider the Sales to unaffiliated customers and Intersegment sales of products.
Total Revenue = Sales to unaffiliated customers + Intersegment sales of products
Total Revenue = $2,000,000 +$500,000
Total Revenue = $2,500,000
To pass the revenue test for qualifying as a reportable segment, a segment’s revenue must exceed $250,000 i.e 10% of the total revenue.
$ 2,500,000 × 10% = $ 250,000.