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

question 84

Multiple Choice

Boasso Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Kershaw Corporation for $1,000 in 2010.Kershaw incurs TV advertising expenses of $300 and sells the machine by phone order for $1,600.If Boasso and Kershaw corporations are members of an expanded affiliated group (EAG) ,their DPGR is:

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

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Definitions:

English Common Law

A legal system developed in England and used as the basis of jurisprudence in many English-speaking countries, characterized by the doctrine of judicial precedent.

Trespass

An unauthorized intrusion or entering onto someone else's property which infringes on the right of the owner.

Tort

A civil wrong that causes someone else to suffer loss or harm resulting in legal liability for the person who commits the tortious act.

Tortfeasor

One who commits a tort.