Which of the Following Statements Is False Regarding the Assignment

question 36

Multiple Choice

Which of the following statements is false regarding the assignment of a gain or loss when an affiliate's debt instrument is acquired on the open market?

• A) Subsidiary net income is not affected by a gain on the debt transaction.
• B) Subsidiary net income is not affected by a loss on the debt transaction.
• C) Parent Company net income is not affected by a gain on the debt transaction.
• D) Parent Company net income is not affected by a loss on the debt transaction.
• E) Consolidated net income is not affected by a gain or loss on the debt transaction.

---

Definitions:

Motor Vehicle Safety Standards

Motor Vehicle Safety Standards are regulations established to ensure the safety and reliability of motor vehicles, protecting passengers, drivers, and pedestrians.

Warranty

A guarantee provided by a seller regarding the quality, performance, or condition of a product.

Gramm-Leach-Bliley Financial Modernization Act

A law enacted in 1999 that aims to regulate the collection, disclosure, and protection of consumers' personal financial information by financial institutions.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.