The Sale of Inventory Items by a Parent Company to an Affiliated

Multiple Choice

The sale of inventory items by a parent company to an affiliated company​

A) ​enters the consolidated revenue computation only if the transfer was the result of arm's length bargaining.
B) ​affects consolidated net income under a periodic inventory system but not under a perpetual inventory system.
C) ​does not result in consolidated income until the merchandise is sold to outside entities.
D) ​does not require a working paper adjustment if the merchandise was transferred at cost.