Under What Condition Does the IRS Consider the Resale Price

question 50

Multiple Choice

Under what condition does the IRS consider the resale price method acceptable as a transfer price?

• A) The subsidiary is a foreign controlled corporation.
• B) The related party is merely a distributor of finished goods.
• C) The divisions are part of a decentralized organization.
• D) There is no market price upon which to base the transfer price.

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