Gill Ltd Is the Wholly Owned Subsidiary of Basaraba Ltd

question 2

Multiple Choice

Gill Ltd. is the wholly owned subsidiary of Basaraba Ltd. Gill purchased all of Basaraba's outstanding bond issue on the open market at a discount. The bonds have an unamortized premium attached. This transaction, in effect, retires the bond and results in a gain. How should the gain be shown?

• A)It will appear on Basaraba's separate-entity statement of comprehensive income only.
• B)It will appear on both Basaraba's separate-entity and consolidated statements of comprehensive income.
• C)It will appear on Basaraba's consolidated statement of comprehensive income only.
• D)It will be added to the value of the bonds payable on Basaraba's statement of financial position.

---

Definitions:

Athletic Venues

Facilities designed for hosting sports events and physical activities, including stadiums, arenas, and gymnasiums.

PR Professional

An individual specializing in public relations, responsible for managing and improving the public image and relationships of clients or employers.

Professional Athlete

An individual who participates in sports as a paid career, dedicating significant time to training and competing at a high level.

PR Campaigns

Strategic communication processes carried out to influence public opinion, build relationships, and manage the reputation of the individual or organization.