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Using the comparable profits method of transfer pricing, the transfer price is determined by: Multiple Choice comparing the normal profits of the selling and buying
Using the comparable profits method of transfer pricing, the transfer price is determined by: Multiple Choice comparing the normal profits of the selling and buying divisions and basing the price on the highest margin. referring to an objective measure of profitability earned by uncontrolled taxpayers on comparable, uncontrolled sales. adding a standard profit margin to the operating expenses of the buying division. dividing a reasonable amount of profit between the selling and buying divisions
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