A US-Based Multinational Has Two Subsidiaries, One in Lithuania Where the the Tax

question 46

Multiple Choice

A U.S.-based multinational has two subsidiaries, one in Lithuania where the tax rate is 15%, and one in Ireland where the tax rate is 2%. The tax rate in the U.S. is 35%. If the Lithuanian-based subsidiary is transferring a good to the Irish subsidiary and the goal is to avoid taxes, it will

• A)sell it to the U.S. parent at a transfer price equal to marginal cost, which will then sell it to the Irish subsidiary at monopoly level pricing.
• B)set the transfer price to the Irish subsidiary at the monopoly level.
• C)set the transfer price to the Irish subsidiary at marginal cost.
• D)Unable to determine with the information given.

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Definitions:

Sexual Assault

Any non-consensual sexual act or behavior directed against another person, regardless of the relationship to the victim.

Criminal Offense

A violation of the law that is punishable by the state or other authority.

Partialisms

A sexual interest in specific parts of the body to the exclusion of other features, sometimes classified as a fetish.

Fetishes

Sexual arousal or satisfaction derived from non-human objects, specific body parts, or particular situations not typically associated with sexual activity.