During the Current Year, Tuesday Company's Foreign Division a Incurred

During the current year, Tuesday Company's foreign Division A incurred production costs of $4 million for units that are transferred to its other foreign Division B. Costs in Division B, outside of the costs of production of the final product, are $8 million. These are third-party costs. Sales revenue for the final product for Division B is $30 million. Other companies in the same country import a similar type of part as Division B at a cost of $7 million. Tuesday has set its transfer price at $14 million, justifying this price because of the special controls it has on the operations in Division A as well as its special manufacturing method. The tax rate in the country where Division A is located is 40% while the tax rate for Division B's country is 70%.
Required:
a) What would Tuesday's total tax liability for both divisions be if it used the $7 million transfer price?
b) What would the total tax liability be if it used the $14 million transfer price?

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