If New Bonds Are Issued from a Parent to Its

question 30

Multiple Choice

If new bonds are issued from a parent to its subsidiary, which of the following statements is false?

• A) Any premium or discount on bonds payable is exactly offset by a premium or discount on bond investment.
• B) There will be $0 net gain or loss on the bond transaction.
• C) Interest expense needs to be eliminated on the consolidated income statement.
• D) Interest revenue needs to be eliminated on the consolidated income statement.
• E) A net gain or loss on the bond transaction will be reported.

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Definitions:

Unplanned Terminations

The unexpected end of a service, program, or relationship, often without the mutual consent of all parties involved.

Service Closure

The process of formally ending services or operations, often involving the completion of final tasks and responsibilities.

Temporal Factors

Elements or aspects related to time that influence outcomes or the nature of events, such as timing, duration, or sequence.

Client Satisfaction

The extent to which clients feel that the service they have received meets or exceeds their expectations.