19. International Manufacturing has two divisions. Division A, which manufactures goods that are transferred to Division B,
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19. International Manufacturing has two divisions. Division A, which manufactures goods that are transferred to Division B, is located in Bulgaria, which has a corporate tax rate of 10%. Division B is located in the United States, where International falls into the 30% tax bracket.
Determine whether the company would prefer a high or a low transfer price.
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Aun Ali
I am an Associate Member of Cost and Management Accountants of Pakistan with vast experience in the field of accounting and finance, including more than 17 years of teaching experience at university level. I have been teaching at both undergraduate and post graduate levels. My area of specialization is cost and management accounting but I have taught various subjects related to accounting and finance.
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