From the original problem. If the company A Co., Ltd. located in Taiwan have a corporate tax rate 25% B company located in the United States is corporate tax rate 35% and administrators can transfer pricing between 2 company. $260 per machine
.Their effect on the income and cost and profit of the 2 company. And the parent company will be
effect of company tax rate in different A and the company B is as follows:
.
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