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	$	185,000			$	610,000			$	460,000
Intersegment transfers		0				100,200				70,000
Operating expenses		182,000				216,000				200,000
Interest expense		20,000				33,000				23,000
Income taxes		71,000				23,000				38,000
Long-lived assets		100,000				160,000				110,000

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

Sales to unaffiliated customers	$	4,540,000
Intersegment transfers		447,000
Operating expenses		2,430,000
Interest expense		146,000
Income taxes		839,000
Long-lived assets		2,220,000

Taft has adopted the following criteria for determining the materiality of an individual foreign country:

1. Calculate sales to unaffiliated customers within a country and as a percent of the consolidated sales.

2. Calculate long-lived assets within a country and as a percentage of the long-lived assets.

3. 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.