Question 3 When S disposes of an asset prematurely and records a gain, how does that affect the consolidated financial statements? O A S cannot record a gain on the sale of the asset. B. P records on its books the gain on the sale. C. The workpaper must include an entry to eliminate S's gain against P's reported income. 0 D. The workpaper must include an entry to adjust S's gain or loss to reflect the gain or loss to the consolidated entity