What is the primary reason we defer financial statement recognition of gross profits on intra-entity sales for goods that remain within the consolidated entity at year-end?

Multiple Choice:

Revenues and COGS must be recognized for all intra-entity sales regardless of whether the sales are upstream or downstream.

Gross profits must be deferred indefinitely because sales among affiliates always remain in the consolidated group.

When intra-entity sales remain in ending inventory, control of the goods has not changed.

Intra-entity sales result in gross profit overstatements regardless of amounts remaining in ending inventory.