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31. The Internal Revenue Service determined that Covington Ltd. should have been using a transfer price of $400 for the purchase of goods from its
31. The Internal Revenue Service determined that Covington Ltd. should have been using a transfer price of $400 for the purchase of goods from its U.S. subsidiary but had set the price at $50. What is the rate of penalty that the IRS can impose on the taxpayer? A. 10% of the amount of taxes underpaid B. 20% of the amount of taxes underpaid C. 40% of the amount of taxes underpaid D. 100% of the amount of taxes underpaid
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