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Fully explain the nature and objectives of transfer pricing. Assuming that Factory A is located in a tax jurisdiction which taxes profits at 20% and
Fully explain the nature and objectives of transfer pricing.
Assuming that Factory A is located in a tax jurisdiction which taxes profits at 20% and B is in one which taxes profits at 30%, calculate the post-tax profit at each factory and the total company profits on the basis of each of the four methods of transfer pricing.
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