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
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 $ 215,000 Italy $640,000 Greece $490,000 0 102,200 100,000 212,000 246,000 230,000 30,000 43,000 33,000 81,000 133,000 33,000 48,000 190,000 140,000 The company's domestic (U.S.) operations reported the following information for the current year Sales to unaffiliated customers $4,640,000 Intersegment transfers: Operating expenses Interest expense Income taxes Long-lived assets 497,000 2,480,000 176,000 889,000 2,270,000
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