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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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