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

Bow Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Kite Corporation for $1,000 in 2011. Kite incurs TV advertising expenses of $300 and sells the machine by phone order for $1,600. If Bow and Kite corporations are members of an expanded affiliated group (EAG) , their DPAD is:

A) $30.
B) $45.
C) $72.
D) $500.
E) None of the above.

Correct Answer:

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