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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 highend exercise equipment for US consumers. The manufacturing subsidiary has total manufacturing costs of $ plus general and administrative expenses of $ The manufacturing unit sells the equipment for $ to the US marketing subsidiary, which sells it to the final consumer for an aggregate of $ The sales subsidiary has total marketing, general, and administrative costs of $ Assume that Singapore has a corporate tax rate of and that the US tax rate is Assume that no tax treaties or other special tax treatments apply.Required:
What is the effect on Crain Company's total corporatelevel taxes if the manufacturing subsidiary raises its price to the sales subsidiary
by Do not round intermediate calculations. Input all amounts as positive values.
Required:
What is the effect on Crain Companys total corporatelevel taxes if the manufacturing subsidiary raises its price to the sales subsidiary by Do not round intermediate calculations. Input all amounts as positive values.
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