Which of the following is not true about Section 482 of the U.S.Internal Revenue code?
A)The code governs taxation of multinational transfer pricing.
B)Requirements include transfer prices between companies in United States only.
C)Requirements include transfer prices between a company and it's foreign or subsidiary.
D)Regulations related to the code recognize that transfer prices can be market-based,or cost-plus-based.
E)The cost-plus-based pricing represents margins on comparable transactions.

Question

Quizplus · Accepted Answer

Section 482 of the U.S. Internal Revenue code does not govern taxation of multinational transfer pricing between companies in United States only, it also applies to transfer prices between a company and its foreign or subsidiary.

Which of the Following Is Not True About Section 482