Bacon Corporation Manufactures an Exercise Machine at a Cost of $800

question 64

Multiple Choice

Bacon Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Kirby Corporation for $1,000 in 2008.Kirby incurs TV advertising expenses of $300 and sells the machine by phone order for $1,600.If Bacon and Kirby corporations are members of an expanded affiliated group (EAG) ,their QPAI is:

• A)$30.
• B)$500.
• C)$1,000.
• D)$1,600.
• E)None of the above.

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