A US company imported baseball bats in December. The bats were made from wood taken from the Brazilian rain forest. The US company purchased the baseball bats from their parent company which is a Brazilian corporate entity. The US company gave a used, fully depreciated bat maker machine to the Brazilian parent company. The bat maker machine makes 100% of the Brazilian company's productive capacity and is capable of taking a 3 inch by 3 inch by 48 inch piece of illegally gather Brazilian hardwood and turning out a completed baseball bat.75% of the bats go to the US market while 25% goes to the UK and Australia. The sales to the UK and Australian by US company include a 15% "baseball" discount.What are the relevant valuation issues?