Where an Investor Sells Inventories to an Associate in a Prior

Multiple Choice

Where an investor sells inventories to an associate in a prior year and the inventories are sold by the associate during the current year, the investment in associate account is:

A) not adjusted as the profit has been realised.
B) decreased by the investor's share of the realised profit.
C) increased by the investor's share of the realised profit.
D) increased by the full amount of the realised profit.