Wow Corporation Manufactures an Exercise Machine at a Cost of $700

Wow Corporation manufactures an exercise machine at a cost of $700 and sells the machine to Kite Corporation for $1,000 in 2014. Kite incurs TV advertising expenses of $300 and sells the machine by phone order for $1,600. If Wow and Kite corporations are members of an expanded affiliated group (EAG) , their DPAD is:

A) $30.
B) $45.
C) $54.
D) $500.
E) None of the above.