Answered step by step
Verified Expert Solution
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 there.
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 Italy Spain 235,000 Greece Sales Intersegment transfers Operating expenses Interest expense Income taxes Long-lived assets 232,000 40,000 91,000 151,000 660,000 510,000 120,000 250,000 43,000 58,000 160,000 101,200 266,000 53,000 43,000 210,000 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 4,740,000 547,000 2,530,000 196,000 939,000 2,320,000 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 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 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 Percentage United States Spain Ital Greece Total 0.00 % Required A Required B 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 ARequired B Required C Calculate long-lived assets within a country and as a percentage of the long-lived assets. (Round your percentage answers to 2 decimal places.) AssetsPercentage United States Spain taly Greece Total 0 0.00 % Required A Required c> 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 BRequired 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. Identify the countries which are 10 percent or more of consolidated sales Required B Required c
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started