Question

Taft Corporation operates primarily in the United States. However, a few years ago, it opened a plant in Spain to produce merchandise to sell there. This foreign operation has been so successful that during the past 24 months the company started a manufacturing plant in Italy and another in Greece. Financial information for each of these facilities follows: Sales Intersegment transfers Operating expenses Interest expense Income taxes Long-1ived assets 221,000 218, 000 33,000 84,000 137,000 646,000496,000 106,000 236, 000 36,000 51,000 146,000 101,900 252,000 46,000 36,000 196,000 The company's domestic (U.S.) operations reported the following information for the current year: Sales to unaffiliated customers Intersegment transfers Operating expenses Interest expense Income taxes Long-1ived assets $4,670,000 512,000 2,495, 000 182,000 904,000 2,285,000 Taft has adopted the following criteria for determining the materiality of an individual foreign country a. Calculate sales to unaffiliated customers within a country and as a percent of the consolidated sales. b. Calculate long-lived assets within a country and as a percentage of the long-lived assets C. Apply Taft's materiality tests to identify the countries which are 10 percent or more of consolidated sales or consolidated long-lived assets to be reported separately

Answer 1

3) ulrement ( e can be eenT Ataly (0·礼7. 10''. 어 consolidat«l tong . livel Orrnre ages can be Sen io United 오tate