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CTP · Question #135
(Topic 2) A U.S.-based electronics company that buys components from one of its foreign subsidiaries at a price above market is likely to:
The correct answer is B. be sheltering profits in a low-tax country. See the full explanation below for the reasoning.
Question
- (Topic 2)
A U.S.-based electronics company that buys components from one of its foreign subsidiaries at a price above market is likely to:
Options
- Abe paid large dividends by the subsidiary.
- Bbe sheltering profits in a low-tax country.
- Cneed tax consultants to act as intermediaries.
- Dmake payment with an intracompany loan.
How the community answered
(21 responses)- A5% (1)
- B71% (15)
- C10% (2)
- D14% (3)
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