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The u. s. internal revenue service (irs) has the authority to impose penalties on companies that significantly underpay taxes as a result of inappropriate transfer pricing. acme company transfers a product to a foreign affiliate at $15 per unit, and the irs determines the correct price should have been $65 per unit. the adjustment results in an increase in u. s. tax liability of $1,250,000. due to this change in price, what amount of penalty for underpayment of taxes will acme company pay?
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