Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Homework Saved Help Problem 8-38 (Algo) (LO 8-4) Taft Corporation operates primarily in the United States. However, a few years ago, it opened a plant

image text in transcribed
image text in transcribed
Homework Saved Help Problem 8-38 (Algo) (LO 8-4) 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 Intersement transfers Operating expenses Interest oxpense Income taxes Long-lived assets Spain $ 196,000 0 192,000 24,000 75,000 111.000 Italy $ 620,000 100,400 226,000 37,000 27,000 170,000 Greece $ 470,000 80,000 210,000 27,000 42,000 120,000 The company's domestic (U.S.) operations reported the following information for the current year. Sales to unaffiliated customers Intersegment transfers Operating expensen Interest expense Income taxes Long-lived assets $ 4,580,000 467,000 2,450,000 156,000 859,000 2,240,000 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. vork Saved Help Long-lived assets 2.240,000 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, Complete this question by entering your answers in the tabs below. Required A Required B Required Apply Toft'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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume 2

Authors: Kermit Larson, Heidi Dieckmann

15th Canadian Edition

1259087360, 9781259087363

More Books

Students also viewed these Accounting questions

Question

Find the asymptotes of the hyperbola given by 2y2 - x2 = 18.

Answered: 1 week ago

Question

Which of the business is below uses a periodic inventory method

Answered: 1 week ago