_____ at 12/31/06, Pozak Reported $80,000 of Intercompany-Acquired Inventory in Its

Multiple Choice

_____ At 12/31/06, Pozak reported $80,000 of intercompany-acquired inventory in its balance sheet. This inventory was acquired in 2005-not 2006-from its 100%-owned subsidiary, Sozak. Sozak's cost was $60,000. Which of the following accounts is credited in consolidation at 12/31/06?

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