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

Boat Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Kite Corporation for $1,000 in 2010.Kite incurs TV advertising expenses of $300 and sells the machine by phone order for $1,600.If Boat 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.