If an affiliate buys bonds on the market, the book value of the intercompany bond liabilities at the time of purchase is: 1- Always assigned to the parent company by its level of control 2- The par value of the bonds minus the unamortized discount or plus the unamortized premium 3. Even value 4- The par value of the bonds plus the unamortized discount or less the unamortized premium No profit or loss arises from the purchase of bonds from a subsidiary if: 1-If the affiliate is a 100%-controlled 2- If the bonds are purchased at book value 3- The bonds are purchased from external entities 4-The gain or loss cannot be estimated