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A Sub buys all of the outstanding bonds payable of the Parent and a gain results. In the income split, this gain is counted as,
A Sub buys all of the outstanding bonds payable of the Parent and a gain results. In the "income split", this gain is counted as,
a. | for the parent | |
b. | is eliminated during the consolidating process abd does not appear on the consolidated income statement. | |
c. | an adjustment to the parent's retained earnings (i.e., treated as a prior period adjustment) | |
d. | for the sub |
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