Assuming a FIFO cost flow, which account should normally be debited for the inventory adjustment (assuming market value of subsidiary’s inventory to be higher than its book value) when allocating the...

Assuming a FIFO cost flow, which account should normally be debited for the inventory adjustment (assuming market value of subsidiary’s inventory to be higher than its book value) when allocating the difference between implied and book values at the end of the year of acquisition?

(A) Inventory

(B) Beginning Retained Earnings—Parent

(C) Cost of Goods Sold

(D) Depreciation Expense