Parent Company holds bonds of its subsidiary, Sub Company, that were purchased on the open market at

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Parent Company holds bonds of its subsidiary, Sub Company, that were purchased on the open market at a substantial discount. Upon consolidation of Parent’s financial statements, how should the difference in carrying values of the bonds on the two companies’ books be reported?

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Advanced Financial Accounting

ISBN: 978-0132928939

7th edition

Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay

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