What transfer prices should green division set for component

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Problem 1: GREEN DIVISIONS IN THE UNITES STATES WITH HIGH INCOME TAX RATES. green division produces a components of the Spain division in a low income tax rate country what transfer prices should green division set for the components sold to the Spain division to minimize taxes.

Option 1: green division should set a high transfer prices to maximize profit
Option 2: green division should set a low transfer prices to maximize profit
Option 3: green division should set a high transfer prices to minimize taxes
Option 4: green division should set a high transfer prices to minimize taxes

Reference no: EM132759718

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