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:

	Spain				Italy				Greece
Sales	$	213,000			$	636,000			$	486,000
Intersegment transfers		0				102,400				96,000
Operating expenses		208,000				242,000				226,000
Interest expense		28,000				41,000				31,000
Income taxes		79,000				31,000				46,000
Long-lived assets		126,000				186,000				136,000

The companys domestic (U.S.) operations reported the following information for the current year:

Sales to unaffiliated customers	$	4,620,000
Intersegment transfers		487,000
Operating expenses		2,470,000
Interest expense		172,000
Income taxes		879,000
Long-lived assets		2,260,000

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 Tafts materiality tests to identify the countries which are 10 percent or more of consolidated sales or consolidated long-lived assets to be reported separately.