An intra-entity sale took place whereby the transfer price exceeded the book value of a depreciable asset. Which statement is true for the year following the sale?
A. A worksheet entry is made witha a debit to retained earnings for a downstream transfer, regardless of the method used to account for the investment.
B. A worksheet entry is made with a debit to gain for a downstream transfer.
C. A worksheet entry is made with a debit to gain for an upstream transfer.
D. A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer when the parent uses the equity method.