Question
Which of the following would be treated as a retirement of the subsidiarys bonds for consolidation purposes, but not an actual retirement on the subsidiarys
Which of the following would be treated as a retirement of the subsidiarys bonds for consolidation purposes, but not an actual retirement on the subsidiarys financial statements?
a. | The subsidiary borrows money from an unaffiliated company and uses the proceeds to retire its outstanding bonds.
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b. | The subsidiary borrows money from the parent and uses the proceeds to retire its outstanding bonds.
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c. | The subsidiary uses its own available cash to purchase and retire its outstanding bonds. | |
d. | The parent purchases the subsidiarys outstanding bonds from an unaffiliated company. |
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