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The purchase of outstanding subsidiary bonds by the parent company has the same impact on consolidated statements as: a. the subsidiary retiring its own debt
The purchase of outstanding subsidiary bonds by the parent company has the same impact on consolidated statements as:
a. | the subsidiary retiring its own debt with the proceeds of new debt issued to outside parties. |
b. | the subsidiary retiring the debt with the proceeds of a loan from the parent. |
c. | the subsidiary retiring the debt with the proceeds of a new stock issue. |
d. | allowing the bonds to continue to be held by outside interests
Explain. |
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