Crain Company has a manufacturing subsidiary in Singapore that produces high-end exercise equipment for U.S. consumers. The manufacturing subsidiary has total manufacturing costs of \( \$ 1,520,000 \), plus general and administrative expenses of \( \$ 352,000 \). The manufacturing unit sells the equipment for \( \$ 2,520,000 \) to the U.S. marketing subsidiary, which sells it to the final consumer for an aggregate of \( \$ 3,520,000 \). The sales subsidiary has total marketing, general, and administrative costs of \( \$ 202,000 \). Assume that Singapore has a corporate tax rate of \( 17 \% \) and that the U.S. tax rate is \( 21 \% \). Assume that no tax treaties or other special tax treatments apply.
Required:
What is the effect on Crain Company's total corporate-level taxes if the manufacturing subsidiary raises its price to the sales subsidiary by \( 20 \% \) ?
Note: Do not round intermediate calculations. Input all amounts as positive values.
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Total from \\
Subsidiaries
\end{tabular} \\
\hline Income prior to increase in transfer price & \\
\hline Revenues & \\
\hline Direct costs & \\
\hline Other costs & \\
\hline Profit before tax & \\
\hline Tax & \\
\hline Profit after tax & \\
\hline Income after increase in transfer price & \\
\hline Revenues & \\
\hline Direct costs & \\
\hline Other costs & \\
\hline Profit before tax & \\
\hline Tax \\
\hline Profit after tax & \\
\hline Difference in after-tax profit \\
\hline
\end{tabular}
