Which of the following actions is likely to reduce the risk of violating transfer pricing regulations?

Question

Farrah Colson · Accepted Answer

The organization sells inventory to an overseas subsidiary at the original cost.

Farrah Colson · Answer

The organization sells inventory to an overseas subsidiary at fair value.

Farrah Colson · Answer

The local subsidiary purchases inventory at a discounted price.

Farrah Colson · Answer

The local subsidiary purchases inventory at the depreciated cost.

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