All of the Following Are Correct Statements About Transfers Between

All of the following are correct statements about transfers between divisions located in countries with different tax rates except that

A) differences in tax rates across countries complicate the determination of the appro-priate transfer price.
B) many companies prefer to report more income in countries with low tax rates.
C) companies must pay income tax in the country where income is generated.
D) a decreasing number of transfers are between divisions located in different countries.