According to U.S. GAAP, when one entity controls another, how should intra-entity inventory sales be accounted for in consolidated financial statements?

A. Intra-entity gross profit should be deferred until the sale of the inventory to an outside party.

B. All intra-entity gross profit should be recognized immediately on the income statement for upstream sales, but not downstream sales.

C. All intra-entity gross profit should be recognized immediately on the income statement for downstream sales, but not upstream sales.

D. GAAP allows managers discretion in determining when to account for intra-entity gross profit.