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

question 23

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 gain 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 gain on constructive retirement of debt,and decreased by the subsidiary's bond interest expense.

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Definitions:

Self-actualization

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Humanistic Theory

Humanistic Theory emphasizes individual potential and stresses the importance of growth and self-actualization.

Innate Tendency

A natural inclination or predisposition towards certain behaviors or reactions, often considered to be genetically programmed.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, including thoughts, feelings, and behaviors.