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	$	200,000			$	625,000			$	475,000
Intersegment transfers		0				100,500				85,000
Operating expenses		197,000				231,000				215,000
Interest expense		26,000				39,000				29,000
Income taxes		77,000				29,000				44,000
Long-lived assets		116,000				175,000				125,000

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

Sales to unaffiliated customers	$	4,600,000
Intersegment transfers		477,000
Operating expenses		2,460,000
Interest expense		161,000
Income taxes		869,000
Long-lived assets		2,250,000

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.

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.