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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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