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Consider the following statements about transfer pricing: I. Income taxes and import duties are an important consideration when setting a transfer price for companies that

Consider the following statements about transfer pricing:

  1. I. Income taxes and import duties are an important consideration when setting a transfer price for companies that pursue international commerce.
  2. II. Transfer prices cannot be used by organizations in the service industry.
  3. III. Transfer prices are totally cost-based in nature, not market-based.

Which of the above statements is (are) true?

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