Question: On January 1 , 2 0 2 2 , a Parent company has a debt outstanding that was originally issued at a discount and was

On January

1, 2022,

a Parent company has a debt outstanding that was originally issued at a discount and was purchased, on issuance, by an unaffiliated party. On January

1, 2022,

a Subsidiary of the Parent purchased the debt from the unaffiliated party. The debt was purchased by the Subsidiary at a slight premium. The Parent is a calendar year company. Which one of the following statements is true?

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