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MA – May 2017 – L2 – Q1d – Transfer pricing

Describe three methods of transfer pricing and discuss their limitations.

Transfer pricing is the method used to sell a product from one subsidiary to another within a company. It impacts the purchasing behavior of the subsidiaries and may have income tax implications for the company as a whole.

Required:

Describe any THREE methods of transfer pricing and discuss their limitations.

(6 marks)

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MA – May 2017 – L2 – Q1d – Transfer pricing

Describe three methods of transfer pricing and discuss their limitations.

Transfer pricing is the method used to sell a product from one subsidiary to another within a company. It impacts the purchasing behavior of the subsidiaries and may have income tax implications for the company as a whole.

Required:

Describe any THREE methods of transfer pricing and discuss their limitations.

(6 marks)

Login or create a free account to see answers

Find Related Questions by Tags, levels, etc.

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