The parent issues a bond to an outside company at par value. Four years later, the subsidiary acquires the bond from the outside company when the market rate of interest exceeded the interest rate stated on the bond. In the year the subsidiary acquires the bond the consolidated financial statements will show: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.

a) A gain on retirement of bonds.

b) A loss on the retirement of bonds.

c) Interest revenue which exceeds interest expense.

d) Interest revenue which is less than interest expense.