Transfer pricing is a strategy that may be used by MNEs to:
A) reduce consolidated corporate income taxes.
B) partially finance a subsidiary in another country.
C) transfer funds from a subsidiary to the parent corporation.
D) all of the above
Answer: D
Business
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A firm is selling an existing asset for $5,000. The asset, when purchased, cost $10,000, was being depreciated under MACRS using a five-year recovery period and has been depreciated for four full years
If the assumed tax rate is 40 percent on ordinary income and capital gains, the tax effect of this transaction is ________. A) $0 tax liability B) $1,320 tax liability C) $1,160 tax liability D) $2,000 tax benefit
Business
AES uses a Feistel structure
Indicate whether the statement is true or false.
Business