Using the Comparable Profits Method of Transfer Pricing, the Transfer

Using the comparable profits method of transfer pricing, the transfer price is determined by:

A) referring to an objective measure of profitability earned by uncontrolled taxpayers on comparable, uncontrolled sales.
B) adding a standard profit margin to the operating expenses of the buying division.
C) dividing a reasonable amount of profit between the selling and buying divisions.
D) comparing the normal profits of the selling and buying divisions and basing the price on the highest margin.

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