Which of the following actions is likely to reduce the risk of violating transfer pricing regulations?

Which of the following actions is likely to reduce the risk of violating transfer pricing regulations?
A . The organization sells inventory to an overseas subsidiary at fair value.
B . The local subsidiary purchases inventory at a discounted price.
C . The organization sells inventory to an overseas subsidiary at the original cost.
D . The local subsidiary purchases inventory at the depreciated cost.

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Answer: C