Which of the Following Statements Is True with Regard to Intercompany

Multiple Choice

Which of the following statements is true with regard to intercompany transactions?

A) An intercompany transaction is eliminated from consolidated taxable income.
B) All intercompany gains are recognized, but losses must be deferred.
C) A cash sale of a business asset by the purchasing member to an acquirer outside of the group triggers immediate recognition of the gain or loss.
D) The gain or loss on an intercompany transaction is deferred for up to ten years, after which it is recognized.