IRS Code Section 482 Describes Appropriate Transfer Prices as "The

question 38

Multiple Choice

IRS code Section 482 describes appropriate transfer prices as "the prices which would have been agreed upon between unrelated parties engaged in the same or similar transactions under the same or similar conditions in the open market." How does it refer to such prices?

• A) Arm's-length prices
• B) Market prices
• C) International prices
• D) Comparable prices

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Definitions:

Preparedness

The species-specific biological predisposition to learn in certain ways but not others.

Instinctive Drift

The tendency of an animal to revert to instinctive behaviors that interfere with the conditioned response being taught.

Instinctive Learning

The innate ability of an organism to perform a certain behavior the first time it is exposed to the appropriate stimulus.

Preparedness

The evolutionary predisposition to learn certain types of behaviors or concepts more easily than others.