Zubin Ltd. had set the transfer price at $40 for the purchase of goods from its U. S. subsidiary. But the IRS audited the transfer price and determined that it should have been using a transfer price of $190. Assuming the adjustment results in an increase in U. S. tax liability of $200,000. Determine the penalty amount.

Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. which of the following policy options might most effectively enable the government to achieve its objectives in this situation? do nothing to all. turn the company into a public enterprise. use antitrust laws to increase competition. regulate the firm's pricing behavior.