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

question 103

Multiple Choice

Boasso Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Kirby Corporation for $1,000 in 2011. Kirby incurs TV advertising expenses of $300 and sells the machine by phone order for $1,700. If Boasso and Kirby corporations are members of an expanded affiliated group (EAG) , their QPAI is:

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