Question
When a Parent company acquires from an unaffiliated third party a Subsidiarys debt instruments (or vice versa), the consolidated financial statements should recognize gain or
When a Parent company acquires from an unaffiliated third party a Subsidiary’s debt instruments (or vice versa), the consolidated financial statements should recognize gain or loss on constructive retirement of the debt. Thereafter, the [I bond] consolidation entry is required to correct the beginning balance of the Equity investment account. Why is this adjustment required? Why does the amount of this gradually decline over the remaining life of the bonds?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
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