The Material Sale of Inventory Items by a Parent Company

The material 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 parties.
D) does not require a working paper adjustment if the merchandise was transferred at cost.