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What is the primary reason we defer financial statement recognition of gross profits on intra-entity sales for goods that remain within the consolidated entity at year end?A – Revenues and COGS must be recognized for all intra–entity sales regardless of whether the sales are upstream or downstream.B – When intra–entity sales remain in ending inventory, ownership of the goods has not changed.C – Gross profits must be deferred indefinitely because sales among affiliates always remain in the consolidated group.D – Intra–entity sales result in gross profit overstatements regardless of amounts remaining in ending inventory.
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