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Crain Company has a manufacturing subsidiary in Singapore that produces high - end exercise equipment for U . S . consumers. The manufacturing subsidiary has

Crain Company has a manufacturing subsidiary in Singapore that produces high-end exercise equipment for U.S. consumers. The manufacturing subsidiary has total manufacturing costs of $1,460,000, plus general and administrative expenses of $346,000. The manufacturing unit sells the equipment for $2,460,000 to the U.S. marketing subsidiary, which sells it to the final consumer for an aggregate of $3,460,000. The sales subsidiary has total marketing, general, and administrative costs of $196,000. Assume that Singapore has a corporate tax rate of 17% and that the U.S. tax rate is 21%. Assume that no tax treaties or other special tax treatments apply.Required:
What is the effect on Crain Company's total corporate-level taxes if the manufacturing subsidiary raises its price to the sales subsidiary
by 20%?(Do not round intermediate calculations. Input all amounts as positive values.)
Required:
What is the effect on Crain Companys total corporate-level taxes if the manufacturing subsidiary raises its price to the sales subsidiary by 20%?(Do not round intermediate calculations. Input all amounts as positive values.)
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