Consolidated group purchases bonds from outside parties


In the year when one member of a consolidated group purchases from outside parties the bonds of another affiliate, the consolidated income statement includes:

a. a gain if purchased above book value.

b. a gain if purchased below book value.

c. a loss if purchased below book value.

d. a deferred gain if purchased above book value.

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Accounting Basics: Consolidated group purchases bonds from outside parties
Reference No:- TGS063657

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