Cotton Comfort Corporation is a U$.$S$.$ shirt manufacturer with a foreign subsidiary in Country X$.$ Cloth to make shirts is woven in the United States, at a cost of $$14$ per shirt, and shipped to Country X where it is cut and sewn at a cost of $$15$ per shirt. These shirts are sold in Europe for $$90$ per shirt. The profit on each shirt is $$61,$ a portion of which is U$.$S$.$ source income and a portion of which is foreign source income, depending on the price at which the cloth is transferred from the United States to Country X$.$

Required:

a$.$ If the tax rate in Country X is lower than the U$.$S$.$ tax rate, would Cotton Comfort prefer a high transfer price or a low transfer price? At what transfer price would all of the profit on these shirts be tax in Country X$?$

b$.$ If the tax rate in Country X is higher than the U$.$S$.$ tax rate, would Cotton Comfort prefer a high transfer price or a low transfer price? At what transfer price would all of the profit on these shirts be tax in the United States?