Company S is a 100%-owned subsidiary of Company P.Company P purchased all the outstanding bonds of Company S at a discount.The bonds had a remaining issuance premium at the time of Company P's purchase.The bonds have 5 years to maturity.At the end of 5 years, consolidated retained earnings:
A) is greater as a result of the purchase.
B) is less as a result of the purchase.
C) is not affected by the purchase.
D) cannot be determined from the information provided.
Correct Answer:
Verified
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