This is just my understanding of it, I could be wrong:
The Profit/Loss test says that you have to use the greater of EITHER the total combined profits or the absolute value of the total combined losses. We can see $77 profits and ($3) losses. 77 is obviously bigger than 3 (make it positive, the absolute value), so only the PROFIT test applies there, not losses.
Say it were reverse and there were $3 profits and ($77) losses. There, you'd use the losses only, 77 being your base and anything 10% of that (positive or negative) would be a report-able segment.
The basic rule for report-able segments is, “Is it at least 10% of everything?” If a segment has at least 10% of all revenues, assets, or P/L, then it's a segment. Needs to pass just ONE of those 3 tests. We see A and B right off the bat have at least 10% of revenues, so they're report-able.
But C isn't 10% of revenues or assets, nor is its loss 10% of profits (3 versus 74). Again, you use EITHER the profits or losses, not both, then just turn those losses into positives and see if they're 10% of the profits. So the answer is A, not D.
Sidenote, those questions were DEFINITELY easy. Lot of those topics didn't even show up on my exam (IIRC there were like 3-4 on depreciation, but my actual exam had zero, guess I lost that lottery).
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