_____ Which of the Following Statements Is True

Multiple Choice

_____ Which of the following statements is true?

A) Elimination by rearrangement is mandatory under current GAAP.
B) Intercompany inventory transfers at cost do not have to be eliminated.
C) If an intercompany inventory transfer is made in late 2004 but the inventory is not resold to an outside, third party until 2005, the intercompany inventory sale must also be eliminated in 2005.
D) Downstream intercompany inventory sales do not have to be eliminated if the subsidiary is 100% owned.
E) None of the above.