USAco, a domestic corporation, manufactures and sells widgets in the United States. USAco also sells widgets to its Canadian subsidiary, CANco, for resale in Canada. USAcos largest U.S. customer purchases 30% of USAcos output for $100 per widget and marks them up 10% before reselling them. CANco also purchases 30% of USAcos output based on the same contracting terms as USAcos largest U.S. customer, but they mark the widgets up 15% before reselling to customers. The price USAco should charge CANco per widget under the comparable uncontrolled price method is:

Question 15 options:

1)

$100.

2)

$110.

3)

$115.

4)

$0.