11. If a parent reports interest expense of $4,300 with respect to bonds held intercompany and the...

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11. If a parent reports interest expense of $4,300 with respect to bonds held intercompany and the subsidiary reports interest income of $4,500 for the same bonds:

(a) Was there a constructive gain or loss on the bonds?

(b) Is the gain or loss attributed to the parent or the subsidiary? And

(c) what does the $200 difference between interest income and expense represent?

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Advanced Accounting

ISBN: 9781292214597

13th Global Edition

Authors: Joseph H. Anthony, Bruce Bettinghaus, Floyd A. Beams, Kenneth Smith

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