When a Portion of Inventories Has Been Pledged as Security

Multiple Choice

When a portion of inventories has been pledged as security on a loan,

A) the value of the portion pledged should be subtracted from the debt.
B) an equal amount of retained earnings should be appropriated.
C) the fact should be disclosed but the amount of current assets should not be affected.
D) the cost of the pledged inventories should be transferred from current assets to noncurrent assets.