Tio, Inc. a U.S. parent owns two subsidiaries, Ecuador Inc. and Taiwan Inc. The corporate tax rate is 20% in Ecuador and

[answerhappygod]

Tio, Inc. a U.S. parent owns two subsidiaries, Ecuador Inc. and
Taiwan Inc. The corporate tax rate is 20% in Ecuador and 40% in
Taiwan. It costs Ecuador Inc. $25 to assemble each widget. Ecuador
Inc. sells all 1,000 widgets of its production to Taiwan Inc. at a
negotiated price of $65 per unit. Taiwan Inc. sold all 1,000
widgets to independent customers for $90 per unit.
Which taxing
jurisdiction would contest the discretionary transfer price of
$80?
a.
United States
b.
Ecuador
c.
Taiwan
d.
All of the above