Wow Corporation Manufactures an Exercise Machine at a Cost of $700

question 107

Multiple Choice

Wow Corporation manufactures an exercise machine at a cost of $700 and sells the machine to Kite Corporation for $1,000 in 2012.Kite incurs TV advertising expenses of $300 and sells the machine by phone order for $1,600.If Wow and Kite corporations are members of an expanded affiliated group (EAG) ,their DPAD is:

• A)$30.
• B)$45.
• C)$54.
• D)$500.
• E)None of the above.

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