Consider the transfer pricing problem on Slide 23 Political and market situations have changed....

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Accounting

Consider the transfer pricing problem on Slide 23
Political and market situations have changed.
Now US corporate tax rate is 19.0% and German tax rate is 27.5%.
Cost of goods sold for Granado USA is now $1,150,000 and the product is
sold by Granado Germany for $2,650,000.
Operating expenses are now $135,000 for each of the subsidiaries.
Suppose the markup for Granado USA is 65.0%.
What is the consolidated net income for the Granado corporation?
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