d. Resale price method. 8. The greatest number of advance pricing agreements have been negotiated with the IRS for which type of intercompany transaction? a. Sales of tangible property. b. Licenses of intangible property. c. Intercompany loans. d. Intercompany services. 9. The IRS has the authority to impose penalties on companies that significantly underpay taxes as a result of inappropriate transfer pricing. Acme Company transfers a product to a foreign affiliate at $15 per unit, and the IRS determines the correct price should have been $65 per unit. The adjustment results in an increase in U.S. tax liability of $1,250,000. Due to this change in price, what amount of penalty for underpayment of taxes will Acme Company pay? a. $0. b. $125,000. c. $250,000. d. $500,000