Assignment
Topic Selection and Rationale
Submit your Portfolio Topic to your instructor for preliminary approval. Provide detailed reasons for your Portfolio Project Option choice. Your submission should contain no more than 1 page of content, double-spaced, framed by a cover page and a reference page, if required.
Caribbean Brewers
Read the attached case study in the module folder: Caribbean Brewers: Transfer Pricing, Ethics, and Governance.
Answer the following questions:
1. How can the majority shareholder shift wealth through accounting cost allocations and transfer pricing?
2. Who is harmed by the wealth-shifting discussed in Question 1?
3. As adviser to the CFO of Caribbean Brewers, to whom are you responsible?
4. JJ is adamant that the production facility is operating as efficiently as before the expansion, if not more efficiently. Is he right? Back up your answer with evidence from the case study, one way or the other.
5. The board wants a report on the rising costs of production. To what extent, if any, are the cost of production rising? Back up your answer with evidence and calculations.
6. JJ desperately wants to be able to prove that Gera International's allegations of poor quality are groundless. How can proof of this claim be gathered from the information you have in the case study?
7. Given the wording in Figure 5 with respect to the taxation of related parties, to what extent is Caribbean Brewers vulnerable to tax reassessment?
8. What are the implications of the composition of the Board members to the reporting of the CFO? Be specific.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.