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    After reading this chapter, you should be able to:

    LO 1     Explain the basic issues associated with transfer pricing.

    LO 2     Explain the general transfer pricing rules and understand the underlying basis for them.

    LO 3     Identify the behavioral issues and incentive effects of negotiated transfer prices, cost-based transfer prices, and market-based transfer prices.

    LO 4     Explain the economic consequences of multinational transfer prices.

    LO 5     Describe the role of transfer prices in segment reporting.