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 ?When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?
A. $20,650,000.
B. $16,700,000.
C. $15,487,500.
D. $1,670,000.
E. $12,525,000.
Answer: E
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