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AAA.LTD Company (UK based company) imports parts from its Russian subsidiary that are used in the production of toys For the Russian subsidiary it costs

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AAA.LTD Company (UK based company) imports parts from its Russian subsidiary that are used in the production of toys For the Russian subsidiary it costs E 23.0 to produce onepart and E 2.30 to ship one part to AAA-LTD Company. AAA.LTD Company uses parts to produce a tov that it sells to UK tov stores for e 46.00 The following rates apply. Bequired: All tax rates ate assumed only for the purpose of the exam quesiton Pound your answers to three decimals. 1) Determine the total amount of taxes and duties paid to the UK and Russian governments and net income. earned by both companies, if the part is sold to AAA.LTD Company at a price of .27.60 per unit 2) Determine the total amount of taxes and duties paid to the UK and Russian governments and net income. eamed by both companies, it the part is sold to AAA.LTD Company at a price of 33.12 per unt 3) As an international tax consultant, which price would you recominend to wse as the transfer price. assuming there are no other tactors to consider, besides the cost consideration? 4) Which factors a company should take into account, when it is establishing the tramfer price

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