Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: ExternalRevenues IntersegmentSales SegmentExpensesA$7,500,000 $600,000 $6,300,000 B 2,900,000 1,000,000 4,300,000 C 700,000 1,300,000 2,200,000 D 4,000,000 250,000 4,100,000 E 1,600,000 800,000 2,700,000 ?For purposes of the profit or loss test, segment C's operating profit or (loss) is:
A. $200,000.
B. $2,000,000.
C. $(200,000.)
D. $700,000.
E. $1,300,000.
Answer: C
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