On an income distribution schedule, any gain or loss resulting from intercompany bonds is charged to

Question

Quizplus · Accepted Answer

Gains or losses resulting from intercompany bonds are charged to the issuer of the bonds because these transactions are eliminated in consolidation, and the issuer is the entity whose financial statements are directly affected by the issuance and subsequent intercompany transactions related to these bonds.

On an Income Distribution Schedule, Any Gain or Loss Resulting