BAMA Edit View History Bookmarks Profiles Tab Window Help - 1 4 7 0 8 Thu Login X A Blackboard X Question 19 - Ch 13 Quiz - Cc x + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.c... New Ch Checkout : Target Quiz i Saved Help Save & Exit Submi Wilmington, Incorporated, a Pennsylvania corporation, manufactures computer components that it sells to Seine Corporation, a French company, for assembly into finished products. Wilmington owns 90% of Seine's stock. Wilmington's cost per component is $5, its selling price per component is $16, and it sold 110,000 components to Seine this year. Wilmington's taxable income as reported on its Form 1120 was $2,400,000, and Seine's taxable ncome as reported on its French corporate income tax return was $1,750,000. Determine the effect on the taxable incomes of both corporations if the IRS determines that an arm's length transfer price per component is $23. :23:57 Multiple Choice O Taxable income of both corporations will increase by $770,000. O Wilmington's taxable income will increase by $770,000. Seine's taxable income does not change. O Wilmington's taxable income will decrease by $770,000 and Seine's taxable income will decrease by $770,000. DII 20 E2 F3 o & @ 9 O 5 6 2 O P W E R T Y U