Which one of the following is NOT an allowable means of testing the acceptability of a related party transaction?
A) Looking at the price to see if it includes all costs plus a profit equal to a firm’s overall profit over a representative period of time in sales of merchandise of the same class or kind.
B) Looking at a previously determined test value to see if the related price closely approximates that price.
C) Looking at a previously determined foreign value in the country of production.
D) Finding that the price was based on a formula derived for the two related parties that was standard for the industry.
E) Finding that the seller prices goods to non-related parties at the same prices.
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The Answer is: C
Citation: 19CFR 152.103(j)(2)
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