Kima is a worldwide seller of road bicycles. The components of the bicycles are manufactured all over the world, and each country is responsible for ordering and assembling the bicycles. However, due to Corona Virus restrictions, manufacturing in Kima (Australia) is limited. The Australian division of Kima has requested the complete bicycles get manufactured by Kima (Singapore), the head office, and sent over as a finished unit. Kima (Singapore) have agreed to this and set a transfer price of $500 per bicycle. Kima (Singapore) Cost of Sales is $300 per bicycle. Kima (Australia) recommended retail price for the completed bicycle is $1,200 per bicycle. The Singaporean tax rate is 17%, and the Australian company tax rate is 30%. (a) Kima is looking to increase its overall after-tax profit and has asked you to identify an alternative way to improve profitability via transfer pricing. Outline what options are available. Your response must clearly show the financial benefit per bicycle. (10 marks) (b) List two potential disadvantages of this approach and explain why. (4 marks) Part B What are the barriers to the convergence of accounting standards arising from international differences? In your response, outline the implications these barriers would have specifically for multinational corporations (MNCs). (6 marks)