Senior Inc. owns 85 percent of Junior Inc. During 20X8, Senior sold goods with a 25 percent gross profit to Junior. Junior sold half of these goods in 20X8. How should 20X8 consolidated income statement items be adjusted?

Group of answer choices

No Ajustment is necessary

Sales, Costs of Goods Sold and Inventory should be adjusted

Net Income should be adjusted

Sales and Cost of Good Sold should be adjusted