The difference between the book value of a bond liability and the purchase price of the bond investment is a gain or loss for consolidated statement purposes.

Question

Quizplus · Accepted Answer

The difference between the book value of a bond liability and the purchase price of the bond investment is a gain or loss, which is recognized for consolidated statement purposes. This gain or loss is the result of the amortization of any discounts or premiums on the bond, and it is reported as a component of other comprehensive income in the consolidated financial statements.

The Difference Between the Book Value of a Bond Liability