juary company based in Melbourne Australia, has a wholy owned subsidiary in Taiwan. The laiwanese subsidiary manufactures bicycles at a cost equal to A$20 per bicycle, which it sells to Guari at an FOB shipping point price ofA$100 each. Guari pays shipping cost ofA$10 per bicycle and an import duty of 10% on the A$100 invoice price. Guari sells the bicycles in Australia for A$200 each. The Australian tax authority discovered that the Guari's Taiwanese subsidiary also sell its bicycles to uncontrolledAustralian customers at the price of A80$ each. Accordingly, the Australian tax authority makes a transfer pricing adjustment to Guari's tax return, which decreases Guari's cost of goods sold by A$20 per bicycle. An offsetting adjustment is made for the import duty previously paid. The effective Income tax rate is 36%. Required : a. Determine the total amount of income taxes and import duty paid on each bicycle (in A$) under each of the following situations: (1). Before the Australian tax authority makes a transfer pricing adjustment. (2). After the Australian tax authority makes a transfer pricing adjustment