A). From the following balance sheets and information given below prepare a consolidated balance sheet using gross method.

Assets	H ltd. (shs)	S ltd. (shs)	Liabilities	H ltd.(shs)	S ltd.(shs)
Assets	800,000	120,000	Share capital (shs 10 per share)	1,000,000	200,000
Stock	610,000	240,000	Profit and loss account	400,000	120,000
Debtors	130,000	170,000	Reserves	100,000	60,000
Bills receivables	10,000	-	Creditors	200,000	120,000
Shares in S 15,000 share(at cost)	150,000	-	Bills payable	-	30,000
Total	1,700,000	530,000	Total	1,700,000	530,000

Additional information:

All profits of S has been earned since the shares were acquired by H but there was already the reserves of shs 60,000 at that date.

The bills accepted by S ltd. Are undervalued by shs 20,000.

Sunday assets of S ltd includes shs 50,000 bought from S ltd, At a profit to the latter of 25% on cost.

B). Consider a firm with two divisions A&B. The products produced by A are transferred to B for further processing. Division A does not have an external market for its output. Division B cannot buy the product produced by division A from other source either.

What transfer pricing method should you recommend for the situation and why?

C). As a CEO of Kenya MNC what factors in relation to international taxation should you consider before placing an investment abroad. (Explain).