Question: Constructive gains and losses on bonds payable: a. Arise when one company purchases the bonds of an affiliate or lends money directly to the affiliate

Constructive gains and losses on bonds payable: a. Arise when one company purchases the bonds of an affiliate or lends money directly to the affiliate to repurchase its own bonds. b. Are realized gains and losses from the viewpoint of the issuer affiliate. c. Are always assigned to the parent because its management makes the decisions for intercompany transactions. d. Are realized and recognized from the viewpoint of the consolidated entity.

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