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 Kirby Corporation for $1,000 in 2014. Kirby incurs TV advertising expenses of $200 and sells the machine by phone order for $1,700. If Boat and Kirby corporations are members of an expanded affiliated group (EAG) , their QPAI is:

A) $200.
B) $700.
C) $900.
D) $1,500.
E) None of the above.