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A Canadian company has subsidiaries in France, England, Canada, and in the USA. The company is somewhat vertically-integrated in that the Canadian subsidiary sells some

A Canadian company has subsidiaries in France, England, Canada, and in the USA. The company is somewhat vertically-integrated in that the Canadian subsidiary sells some of its output to the USA subsidiary. Which further processes the material. If the market is fully-competitive, which transfer price would likely be used, given Canada Revenue Agency's published policy on transfer pricing? 

A) market-based price 

B) full cost plus a markup 

C) negotiated price 

D) distress price 

E) either market-based or full cost

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