Which of the following statements is/are correct about Transfer Pricing? 1. Transfer price is the price at which related parties transact with each other, such as during the trade of supplies or labor between departments. 2. Multinational companies can manipulate transfer prices in order to shift profits to low tax regions. 3. To remedy the misuse of Transfer Pricing, regulations enforce an arm's length transaction rule that requires pricing to be based on similar transactions done between unrelated parties. Select the correct answer using the codes given below: - Study24x7
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Which of the following statements is/are correct about Transfer Pricing? 1. Transfer price is the price at which related parties transact with each other, such as during the trade of supplies or labor between departments. 2. Multinational companies can manipulate transfer prices...

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A

1 and 2 only

B

2 and 3 only

C

1 and 3 only

D

1, 2 and 3

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