International Transfer Prices: CanAm Corp. has two operating divisions. The company has a logging operation in Canada. The logs are milled and shipped to the United States where they are used by the company's building supplies division. Operating expenses in Canada amount to $5 million. Operating expenses in the United States amount to $1 1 million exclusive of the costs of any goods transferred from Canada. Revenues in the United States are $30 million. If the lumber were purchased from one of the company's U.S. lumber divisions, the costs would be $6 million. However, if the lumber had been purchased from an independent Canadian supplier, the cost would be $8 million. The marginal income tax rate in Canada is 60 percent, while the U.S. tax rate is 40 percent.

Required: What is the company's total tax liability to both jurisdictions for each of the two alternative transfer pricing scenarios ($6 million or $8 million)?