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

Macon Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Kershaw Corporation for $1,000 in 2012.Kershaw incurs TV advertising expenses of $300 and sells the machine by phone order for $1,500.If Macon and Kershaw corporations are members of an expanded affiliated group (EAG) ,their DPGR is:

A) $30.
B) $800.
C) $1,200.
D) $1,500.
E) None of the above.

Correct Answer:

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