At the End of the Year,a Parent Acquires a Wholly

question 37

Multiple Choice

At the end of the year,a parent acquires a wholly owned subsidiary's bonds from unaffiliated parties at a cost less than the subsidiary's carrying value.The consolidated net income for the year of acquisition should include the parent's separate operating income plus:

• A)the subsidiary's net income increased by the gain on constructive retirement of debt.
• B)the subsidiary's net income decreased by the loss on constructive retirement of debt.
• C)the subsidiary's net income increased by the gain on constructive retirement of debt,and decreased by the subsidiary's bond interest expense.
• D)the subsidiary's net income decreased by the loss on constructive retirement of debt,and decreased by the subsidiary's bond interest expense.

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Definitions:

Behavioral Synchrony

The phenomenon where individuals in a group mirror each other's actions or emotions, often leading to increased cohesion and empathy.

Collective Cohesion

The sense of solidarity, unity, and commitment among members of a group, which strengthens their willingness to work together towards common goals.

Belongingness

The human emotional need to be an accepted member of a group, whether it is friends, family, or a larger community.

Emotional Cohesion

The bonding of group members through shared feelings, empathy, or emotional experiences that enhance a sense of unity or togetherness.