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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 total manufacturing costs of $1,570,000,

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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 total manufacturing costs of $1,570,000, plus general and administrative expenses of $357,000. The manufacturing unit sells the equipment for $2,570,000 to the US marketing subsidiary, which sells it to the final consumer for an aggregate of $3,570,000. The sales subsidiary has total marketing, general, and administrative costs of $207,000. Assume that Singapore has a corporate tax rate of 33% and that the U.S. tax rate is 46%. 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.) Total from in ander price 6.140.000 income prote Revenue Det Omroh Probota Power Income for increase in transfer price Direct costs lomer costs Proborax Profitar D erence in after tax pro MacBook Air 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 $1,570,000, plus general and administrative expenses of $357,000. The manufacturing unit sells the equipment for $2,570,000 to the US marketing subsidiary, which sells it to the final consumer for an aggregate of $3,570,000. The sales subsidiary has total marketing, general, and administrative costs of $207,000. Assume that Singapore has a corporate tax rate of 33% and that the U.S. tax rate is 46%. 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.) Total from in ander price 6.140.000 income prote Revenue Det Omroh Probota Power Income for increase in transfer price Direct costs lomer costs Proborax Profitar D erence in after tax pro MacBook Air

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