Which of the following lists are acceptable methods for adopting a reasonable transfer price between a Canadian parent and its foreign subsidiary corporations?
A)Comparable arm's-length selling price method; cost-plus method; resale price method
B)Cost-plus method; resale price method; profit-margin method
C)Lowest tax rate method; resale price method; comparable arm's-length selling price method
D)Comparable arm's-length selling price method; lowest tax rate method; profit-margin method

Question

Quizplus · Accepted Answer

the Comparable arm's-length selling price method, cost-plus method, and resale price method are all accepted methods for determining a reasonable transfer price according to Canadian tax regulations. The profit-margin method and the lowest tax rate method are not accepted methods.

Which of the Following Lists Are Acceptable Methods for Adopting