Using the Fully Adjusted Equity Method,an Intercompany Gain on an Upstream

Multiple Choice

Using the fully adjusted equity method,an intercompany gain on an upstream sale of land is:

A) recognized by the parent and the deferral is shared between the controlling and noncontrolling stockholders of the subsidiary.
B) recognized by the subsidiary and the deferral is shared between the controlling and noncontrolling stockholders of the subsidiary.
C) deferred by the subsidiary until the land is sold to an entity outside the consolidated group.
D) recognized by the subsidiary and the deferral is completely allocated to the controlling stockholders of the subsidiary.