_____ in 2005, an Intercompany Inventory Transfer Above Cost Occurred

Multiple Choice

_____ In 2005, an intercompany inventory transfer above cost occurred. In 2006, all this inventory was resold to an outside party. Which of the following accounts would require adjustment or elimination in consolidation at 12/31/06?

A) Cost of Sales.
B) Intercompany Cost of Sales.
C) Intercompany Sales.
D) Inventory.
E) None of the above.