3. How will the intercompany sale affect Pon’s income from Son and Pon’s net income for 2016?

a Pon’s income from Son will decrease, and its net income will not be affected.

b Neither Pon’s income from Son nor its net income will be affected.

c Pon’s income from Son will increase, and its net income will not be affected.

d Pon’s income from Son will not be affected, but its net income will decrease.