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A company sells product to a controlled foreign subsidiary at $30 per unit. The parents U.S. tax rate is 35%; The foreign subsidiarys, 25%. If
A company sells product to a controlled foreign subsidiary at $30 per unit. The parents U.S. tax rate is 35%; The foreign subsidiarys, 25%. If the internal revenue service is successful in raising the transfer price to $35, the combined companys expense will increase by 50 cents per unit
a. True b. False
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