ACCT 321 Second Semester-2020 Case Study-2 Stanley Company imports wooden bowls from its Australian subsidiary. Per unit, this product costs the Australian subsidiary $8.00 to produce and $1.00 to ship to Stanley Company. Stanley Company uses bowls for home and kitchen set that it sells to U.S. furniture stores for S20 per unit. The following tax rates apply: Australian income tax U.S. income tax U.S. import duty 30% 35% 10% of invoice price Required: 1. If the wooden bowl is sold to Stanley Company at a price of $16 per unit, determine the total amount of: a) Net income. b) Taxes and duties paid to the U.S. and Australian governments. 2. If the wooden bowl is sold to Stanley Company at a price of $18 per unit, determine the total amount of: a) Net income. b) Taxes and duties paid to the U.S. and Australian governments. 3. Explain why the results obtained in parts (1) and (2) differ