Question
1) If the price paid by a parent company to acquire the debt of a subsidiary is greater than the book value of the liability,
1) If the price paid by a parent company to acquire the debt of a subsidiary is greater than the book value of the liability, a ________ occurs.
A) Realized loss on the retirement of debt from the viewpoint of the subsidiary
B) Realized gain on the retirement of debt from the viewpoint of the subsidiary
C) Constructive loss on the retirement of debt from the viewpoint of the consolidated entity
D) Constructive gain on the retirement of debt from the viewpoint of the consolidated entity
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
