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 $20.50 per shirt, and shipped to Country X where it is cut and sewn at a cost of $23.40 per shirt. These shirts are sold in Europe for $101 per shirt. The profit on each shirt is $57.10, 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? Complete this question by entering your answers in the tabs below. 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 ? Note: Round your answer to 2 decimal places. Jumper, Incorporated, which has a 21 percent tax rate, owns 40 percent of the stock of a CFC. At the beginning of 2022 , Jumper's basis in its stock was $660,000. The CFC's 2022 income was $1 million, $800,000 of which was subpart F income. The CFC paid no foreign income tax and distributed no dividends. Required: In 2023 , the CFC's income was $600,000, none of which was subpart F income or GILTI, and it distributed a $300,000 dividend to its shareholders ( $120,000 to Jumper). How much of this actual dividend is taxable to Jumper in 2023 ? Compute Jumper's basis in its CFC stock at the beginning of 2024. Note: Consider intermediate values in dollars and not in millions. Enter your final answers also in dollars and not in millions of dollars