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:

Serotonin Level

The concentration of serotonin, a key neurotransmitter involved in regulating mood, appetite, and sleep, in the brain.

Law of Effect

A principle of learning stating that behaviors followed by satisfying consequences tend to be repeated, while those followed by unsatisfying consequences are less likely to be repeated.

Reward

A stimulus or event that increases the likelihood of a behavior being repeated; it is often used in the context of operant conditioning.

Punishment

A consequence delivered to an individual or animal in response to an undesirable behavior, with the intention of decreasing or eliminating that behavior.