Emron Company Owns a 100% Interest in the Common Stock

Emron Company owns a 100% interest in the common stock of the Dietz Company. On January 1, 20X2, Emron sold Dietz a fixed asset that Dietz will use over a 5-year period. The asset was sold at a $5,000 profit. In the consolidated statements, this profit will

A) not be recorded.
B) be recognized over 5 years.
C) be recognized in the year of sale.
D) be recognized when the asset is resold to outside parties at the end of its period of use.