which of the following statement is ture when the parent company purchase from an unrelated party bonds payable previously issued by one of subsidiary companies controlled by the parent company

A. the parent company will recognize, in its own separate books, gain or loss on the constructive retirement .

B The subsidiary company will recognize, in its own separate book, a again or loss on the construcitve retirement.

C. The subdiary company must remove the bonds payable from its own separate books and the parent company must remove the bonds investment from its own separate book.

D. A gain or loss on the constructive retirement of the bond will be reported on consolidated income statement