Worldwide Inc., is a multinational company with divisions around the world. Division A in the United States purchases a part from Division G in China. The part can be purchased externally for $7 each. Transportation costs amount to $1 and the commission of $.50 will not need to be paid.
What is the transfer price using the comparable uncontrolled price method?
A)$8.50
B)$8
C)$7
D)$7.50

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The Answer of Worldwide Inc., is a multinational company with divisions around the world. Division A in the United States purchases a part from Division G in China. The part can be purchased externally for $7 each. Transportation costs amount to $1 and the commission of $.50 will not need to be paid.
What is the transfer price using the comparable uncontrolled price method?
A)$8.50
B)$8
C)$7
D)$7.50