C. Global Enterprises Global Enterprises has a manufacturing affiliate in Country A that incurs costs of $600,000 for goods at full capacity of 10,000 units that it sells to its sales affiliate in Country B. The sales affiliate resells these goods to final consumers for $100 per unit Both affiliates incur operating expenses of $100,000 each. Global Enterprises sets transfer price as $75 for the goods from its manufacturing affiliate in Country A to is sales affiliate in Country B. Now suppose that Country B levies a corporate income tax of 20 percent on taxable income (vs. 30 percent in Country A) and a tariff of 10 percent on the declared value of the imported goods Required: Prepare a consolidated income statement for Global Enterprises at full capacity based on above information. The manufacturing affiliate in Country A received a notice from local tax authority who declared that the price of the goods selling to the affiliate in Country B is lower than that based on arm's length principle. Therefore Global Enterprises is required to raise the price to $80 per unit referring to prices used in comparable transactions between independent companies. Required: Suppose you ae coEptsYou hae to ere consolidated income statement to reflect the effect of the transfer price increase required by the tax authority, and explain the result. b. You are also requedtowproposal for the board of directors of Gilobal Enterprises on the factors to be considered in the international transfer price setting