Parent Corporation Is Located in a Country with an Income

Parent Corporation is located in a country with an income tax rate of 40%. Subsidiary Company is located in a country with an income tax rate of 25%. The best tax strategy for the enterprise would be to set the transfer prices on sales of goods from the subsidiary to the parent at a price that is

A) higher than the price that would be in effect for unrelated parties in an arms length transaction.
B) lower than the price that would be in effect for unrelated parties in an arms length transaction.
C) equal to the price that would be in effect for unrelated parties in an arms length transaction.
D) transfer prices do not affect overall tax paid.