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The combined federal and provincial corporate income tax rate in Alberta is 23%. In Colorado, the combined federal and state corporate income tax rate is

The combined federal and provincial corporate income tax rate in Alberta is 23%. In Colorado, the combined federal and state corporate income tax rate is 25.5%. If a multinational oil and gas company is transferring products from its Alberta division to its Colorado division, would it want to set transfer prices relatively high or relatively low? Explain.

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