Taft Corporation operates primarily in the United States. However, a few years ago, it opened a...
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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-lived assets Spain $ 206,000 0 202,000 28,000 79,000 121,000 Sales to unaffiliated customers Intersegment transfers Operating expenses Interest expense Income taxes Long-lived assets Italy $ 630,000 100,600 236,000 41,000 31,000 180,000 Greece $ 480,000 The company's domestic (U.S.) operations reported the following information for the current year: $ 4,620,000 487,000 2,470,000 166,000 879,000 2,260,000 90,000 220,000 31,000 46,000 130,000 Taft has adopted the following criteria for determining the materiality of an individual foreign country: (1) Sales to unaffiliated customers within a country are 10 percent or more of consolidated sales, or (2) long-lived assets within a country are 10 percent or more of consolidated long-lived assets. 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. Required A Required B Required C Calculate sales to unaffiliated customers within a country and as a percent of the consolidated sales. (Round your percentage answers to 2 decimal places.) United States Spain Italy Greece Total Revenues $ 0 17 Percentage % % % % 0.00% < Required A Required B > Required A Required B Required C Calculate long-lived assets within a country and as a percentage of the long-lived assets. (Round your percentage answers to 2 decimal places.) United States Spain Italy Greece Total Assets $ 0 Percentage % % % % 0.00% < Required A Required C > Required A Required B Required 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. Identify the countries which are 10 percent or more of consolidated sales < Required B Required C > 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-lived assets Spain $ 206,000 0 202,000 28,000 79,000 121,000 Sales to unaffiliated customers Intersegment transfers Operating expenses Interest expense Income taxes Long-lived assets Italy $ 630,000 100,600 236,000 41,000 31,000 180,000 Greece $ 480,000 The company's domestic (U.S.) operations reported the following information for the current year: $ 4,620,000 487,000 2,470,000 166,000 879,000 2,260,000 90,000 220,000 31,000 46,000 130,000 Taft has adopted the following criteria for determining the materiality of an individual foreign country: (1) Sales to unaffiliated customers within a country are 10 percent or more of consolidated sales, or (2) long-lived assets within a country are 10 percent or more of consolidated long-lived assets. 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. Required A Required B Required C Calculate sales to unaffiliated customers within a country and as a percent of the consolidated sales. (Round your percentage answers to 2 decimal places.) United States Spain Italy Greece Total Revenues $ 0 17 Percentage % % % % 0.00% < Required A Required B > Required A Required B Required C Calculate long-lived assets within a country and as a percentage of the long-lived assets. (Round your percentage answers to 2 decimal places.) United States Spain Italy Greece Total Assets $ 0 Percentage % % % % 0.00% < Required A Required C > Required A Required B Required 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. Identify the countries which are 10 percent or more of consolidated sales < Required B Required C >
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Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
Posted Date:
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