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Crain Company has a manufacturing subsidiary in Singapore that produces high - end exercise equipment for U . S . consumers. The table [
Crain Company has a manufacturing subsidiary in Singapore that produces highend exercise equipment for US consumers. The tabletableTotal fromSubsidiariesIncome prior to increase in transfer price,RevenuesDirect costs,Other costs,Profit before tax,TaxProfit after tax,Income after increase in transfer price,RevenuesDirect costs,Other costs,Profit before tax,TaxProfit after tax,Difference in aftertax profit,tabletableTotal fromSubsidiariesIncome prior to increase in transfer price,RevenuesDirect costs,Other costs,Profit before tax,TaxProfit after tax,Income after increase in transfer price,RevenuesDirect costs,Other costs,Profit before tax,TaxProfit after tax,Difference in aftertax profit,
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.
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