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 intra-entity sales result in gross profit overstatements regardless of amounts remaining in ending inventory. when intra-entity sales remain in ending inventory, control of the goods has not changed. gross profits must be deferred indefinitely because sales among affiliates always remain in the consolidated group. revenues and cogs must be recognized for all intra-entity sales regardless of whether the sales are upstream or downstream.