Description of this paper

Assume that Sunila Company, a French manufacturer,...

Description

Solution


Question

Assume that Sunila Company, a French manufacturer, sells the same product to both controlled and uncontrolled distributors in the United States. The price to uncontrolled distributors is $40 per unit. Sunila affixes its trademark to the products sold to its U.S. subsidiary but not to the products sold to the uncontrolled distributor. The trademark is considered to add approximately $10 of value to the product. Following the comparable uncontrolled transaction method, Sunila should most likely use what amount as the transfer price? a. $50 b. $40 c. $30 d. The appropriate transfer price cannot be calculated with the above information

 

Paper#4944 | Written in 18-Jul-2015

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