Italy Greece Spaln Sales....... Intersegment transfers $600,000 $175,000 $450,000 -0- 172,000 16,000 190,000 19,000 34,000 100,000 Operating expenses 206,000 Interest expense Income taxes.. Long-lived assets. 19,000 150,000 67,000 91,000 Sales to unaffiliated customers..... Intersegment transfers. Operating expenses.. Interest expense. Income taxes.... Long-lived assets $ 4,500,000 427,000 2,410,000 819,000 2,200,000
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:
The company’s domestic (U.S.) operations reported the following information for the current year:
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.
Apply Taft’s materiality tests to identify the countries to report separately with respect to (a) revenues and (b) long-lived assets.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
