Division a Transfers a Profitable Subassembly to Division B,where It

Multiple Choice

Division A transfers a profitable subassembly to Division B,where it is assembled into a final product.Division A is located in New Zealand,which has a high tax rate.Division B is located in Thailand,which has a low tax rate.Ideally, (1) which type of before tax income should each division report from the transfer and (2) what type of transfer price should be set for the subassembly?
Division A
Division B
Division C
Income
Income
Price

A) low
Low
Low
B) low
High
Low
C) low
High
High
D) high
Low
High