7. Using the fully adjusted equity method, an intercompany gain on an upstream sale of inventory is: recognized by the parent and the deferral is shared between the controlling and noncontrolling stockholders of the subsidiary. B. recognized by the sobsidiary and the deferral is shared between the controlling and noncontrolling stockholders of the subsidiary. C. recognized by the subsidiary and the deferral is completely allocated to the controlling stockholders of the subsidiary. D. deferred by the subsidiary until the land is sold to an entity.outside the consolidated group