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TXX5766 USAco, a domestic corporation, is a wholly-owned subsidiary of FORco, a foreign corporation. USAco...

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Accounting

TXX5766

USAco, a domestic corporation, is a wholly-owned subsidiary of FORco, a foreign corporation. USAco purchases chemical supplies from FORco, and also pays FORco a royalty for the use of FORco's propriety pharmaceuticals. The only method USAco could use to determine the arm's length price for both of these related party transactions is:

a)the comparable profits method.

b)the cost plus method.

c)the resale price method.

d)the comparable uncontrolled price method.

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