When Are Gains on Intercompany Transfers of Assets Between an Investor

When are gains on intercompany transfers of assets between an investor and a significant influence investment recognized as part of the investment income accounted for by the parent under the equity method?

A) In the period when the intercompany transfer takes place.
B) In the period(s) when the assets are sold to third parties or consumed.
C) They are never recognized.
D) They are recognized only when the investment is sold.
Bloom's