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Question - What has spawned a major political issue concerning the estimated cost to the United States Treasury of as much as $9 billion to $13 billion per year in lost taxes that could presumably be collected if transfer prices were calculated according to U.S. tax laws?

a. Tax avoidance by foreign companies using inflated transfer prices to reduce the profit of U.S. subsidiaries.

b. Tax avoidance by domestic, United States, companies using inflated transfer prices to reduce the foreign profit of U.S. subsidiaries.

c. Tax avoidance by foreign companies using deflated transfer prices to reduce the profit of U.S. subsidiaries.

d. Tax avoidance by domestic, United States, companies using deflated transfer prices to reduce the profit of foreign subsidiaries.

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