_____ A parent company acquired in the open market 20% of its 100%-owned subsidiary's outstanding 7% bonds for $202,000. The outstanding bonds have a face value of $1,000,000 and a carrying value of $1,030,000 on the acquisition date. The gain or loss to be reported in the consolidated income statement in the bond acquisition year is

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The parent company acquired 20% of the bonds, which is $200,000 face value. The carrying value of these bonds is 20% of $1,030,000, which is $206,000. The bonds were purchased for $202,000, resulting in a gain of $4,000 ($206,000 - $202,000).

_____ a Parent Company Acquired in the Open Market 20