On December 31,2022, Parent Co. has a bond issue outstanding that has a face value...
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Accounting
On December Parent Co has a bond issue outstanding that has a face value of $ an unamortized premium of $ a coupon rate of and five years
remaining to maturity. Nonaffiliated investors hold all the bonds. Market rates of interest have risen above the coupon rate on the bonds and have caused the market price of
Parent Cos bonds to fall.
On December Sub Co purchases all of the outstanding bonds of Parent Co for $
Using the approach consistent with the income measurement of the separate entities, the gain allocated to Parent Co and Sub Co respectively would be
Multiple Choice
$: $
$; $
$; $
$; $
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