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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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