Owns 100 of mexsub - Study guides, Class notes & Summaries

USAcoUSAco, a U.S. corporation, owns 100% of MEXSub, a Mexican corporation. USAco manufactures telecommunications equipment and sells the equipment to an unrelated foreign distributor at a price of $750 per unit. USAco also sells the same equipment to MEXSub, which then resells that same equipment to unrelated foreign customers for $850 each. The conditions of USAco's sales to MEXSub are substantially equivalent to those of USAco's sales to the unrelated foreign distributorAnswer & E...