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Subsidiary A sells 1,000 products each year to subsidiary B. The income tax rate for company A is 20% and for company B is 50%.
Subsidiary A sells 1,000 products each year to subsidiary B. The income tax rate for company A is 20% and for company B is 50%. The transfer price can be determined anywhere between $100 and $200. What price should the parent company choose for the transfer between A and B?
a. $200
b. $100
c. @150
d. All are correct
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