Question 4 (10 marks) ACME corporation (CEO: Coyote) has nationwide operations and branches in many states in USA. Ignore actual taxation jurisdiction and taxation entity A. Suppose that West Virginia (WV) branch (manager: Meme) is subject to a tax rate that is significantly lower than California (CAL) branch's tax rate. When WV branch purchases a component from CAL branch, ACME corporation may have incentive to minimize the corporate income tax in terms of transfer pricing on the component. Consequently, the transfer price of the component would tend to be high or low? Explain briefly (in no more than 3 sentences). (4 marks)