Pointe Company Purchased Bonds Issued by Sentient Company on the Open

Pointe Company purchased bonds issued by Sentient Company on the open market at a premium. Sentient Company is a 100% owned subsidiary of Pointe Company. Pointe intends to hold the bonds until maturity. In a consolidated balance sheet, the difference between the bond carrying values in the two companies would be:

A) included as a decrease to retained earnings.
B) included as an increase to retained earnings.
C) reported as a deferred debit to be amortized over the remaining life of the bonds.
D) reported as a deferred credit to be amortized over the remaining life of the bonds.