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

Question 24

Multiple Choice

Bacon Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Kershaw Corporation for $1,000 in 2011. Kershaw incurs TV advertising expenses of $300 and sells the machine by phone order for $1,600. If Bacon 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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