4M United States, a local multinational corporation, distributes its products through controlled foreign subsidiaries located in both Europe & Asia. 4M is very familiar with the transfer pricing requirements of IRC Section 482 and ensures that its intercompany prices are compliant. The most recent "comparable study indicated that its Irish subsidiary is entitled to a 10% operating margin and its Chinese subsidiary is entitled to a 7% operating margin. Below are the current financials for both the China and Ireland foreign subsidiaries. China Revenue $1,000 Cost 850 Op Mgn $150 Ireland Revenue $3,000 Cost $2.800 Op Mgn $200 Assuming the US corporate income tax rate is 21%, the China corporate income tax rate is 25%, and the Ireland rate is 12.5%; by how much would 4M's global tax liability change if it adjusted transfer prices to be aligned with the comparable study? Be sure to show your work to enable partial credit. Increase $11.70 Decrease $11.70 Decrease $5.30 Increase $5.30