Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Taft Corporation operates primarily in the United States. However, a few years ago, it opened a plant in Spain to produce merchandise to sell

image text in transcribedimage text in transcribedimage text in transcribed

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: Greece Sales Spain $ 227,000 Italy $ 652,000 $ 502,000 Intersegment transfers 8 101,600 112,000 Operating expenses 224,000 258,000 242,000 Interest expense 36,000 49,000 39,000 Income taxes Long-lived assets 87,000 144,000 39,000 54,000 202,000 152,000 The company's domestic (U.S.) operations reported the following Information for the current year: Sales to unaffiliated customers Intersegment transfers Operating expenses Interest expense Income taxes Long-lived assets $ 4,700,000 527,000 2,510,000 188,000 919,000 2,300,000 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 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.) Revenues United States Spain Percentage % 96 Italy Greece %6 96 Total % Required R

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

Step: 3

blur-text-image

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

Payroll Accounting 2016

Authors: Jeanette Landin, Paulette Schirmer

2nd edition

978-1259821950, 1259821951, 1259572196, 978-1259572197

More Books

Students also viewed these Accounting questions

Question

Organizational buyers are ________.

Answered: 1 week ago

Question

1. Letters and diaries in history.

Answered: 1 week ago