1. **Suppose an MNC subsidiary buys 100 input units from its parent at a price of $4 each. It has $300 in additional production costs, and sells its 100 units of output for $8 to the MNC parent. The subsidiary pays a 25% local profit tax. The MNC parent sells the output at home for $10, and its cost of producing inputs is $1. The parent pays a profit tax of 20% at home on repatriated profits. what is the subsidiary net profit? Assume no selling costs at home. What is the MNC parent's total profit from the operation? (1+1-2)