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Transfer Pricing at Google Values: Division A Cost: $70,000,000 Division B Revenue: $100,000,000 Transfer Price: $85,000,000 Requirements: Analyze the transfer pricing issue between divisions. Calculate

Transfer Pricing at Google

    • Values:
      • Division A Cost: $70,000,000
      • Division B Revenue: $100,000,000
      • Transfer Price: $85,000,000
    • Requirements:
      1. Analyze the transfer pricing issue between divisions.
      2. Calculate the divisional profit under the transfer price.
      3. Discuss the challenges of transfer pricing in tech companies.
      4. Recommend strategies to optimize transfer pricing at Google.

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