Usco Inc. manufactures a product for $20 per unit that is sold to its affiliate, Foreignco, for $24 per unit. Foreignco sells the product at $30 per unit in the local market. Assuming a U.S. tax rate of 21% and Foreignco's local income rate of 10%, the total income tax is calculated as follows: Assume the IRS adjusts the transfer price to $26. Determine the total income tax if the tax authority of Foreignco's local government does not provide a correlative adjustment. $1.86 $1.44 $1.66 $1.84