Subsidiary open-market acquisition


A material realized gain on a subsidiary's open-market acquisition of its parent company's outstanding bonds at a discount is displayed in the consolidated income statement as:

a) An extraordinary item, net of income tax effects

b) An ordinary item, gross of income tax effects

c) Either an extraordinary item or an ordinary item, net or gross of income tax effects, depending on the circumstances

d) None of the foregoing

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Accounting Basics: Subsidiary open-market acquisition
Reference No:- TGS062174

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