Suppose a U

question 87

Multiple Choice

Suppose a U.S.-based MNC makes computers with parts from its subsidiary in a low-tax East Asian country. It can reduce its reported U.S. income-and increase its subsidiary's profits-by

• A)overpaying for the computer components.
• B)underpaying for the computer components.
• C)paying an arm's length price.
• D)none of the above