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 $1,590,000, plus general and administrative expenses of $359,000. The manufacturing unit sells the equipment for $2,590,000 to the U.S. marketing subsidiary, which sells it to the final consumer for an aggregate of $3,590,000. The sales subsidiary has total marketing, general, and administrative costs of $209,000. 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 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.)

\begin{tabular}{|l|l|} \hline Income prior to increase in transfer price & \begin{tabular}{c} Total from \\ Subsidiaries \end{tabular} \\ \hline Revenues & \\ \hline Direct costs & \\ \hline Other costs & \\ \hline Profit before tax & \\ \hline Tax & \\ \hline Profit after tax & \\ \hline & \\ \hline Income after increase in transfer price & \\ \hline Revenues & \\ \hline Direct costs & \\ \hline Other costs & \\ \hline Profit before tax & \\ \hline Tax & \\ \hline Profit after tax & \\ \hline \end{tabular}