Purple Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Scarlet

Question:

Purple Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Scarlet Corporation for $1,200 in 2015.

Scarlet incurs TV advertising expenses of $300 and sells the machine by phone order for $1,600. If Purple and Scarlet are not related parties, determine their:

a. DPGR.

b. QPAI.

c. DPAD.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...