Question: i already posted this question but it was wrong please give correct answer One company purchases the outstanding debt instruments of an affiliated company on

i already posted this question but it was wrong please give correct answer

i already posted this question but it was wrong please give correct

One company purchases the outstanding debt instruments of an affiliated company on the open market. This transaction creates a gain that is appropriately recognized in the consolidated financial statements of that year. Thereafter, a worksheet adjustment is required to correct the beginning balance of consolidated Retained Earnings (or the parent's Investment in Subsidiary account when the equity method is employed). Why is the amount of this adjustment reduced from year to year

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