ABC,a holder of a $400,000 XYZ Inc.bond,collected the interest due on June 30,2008,and then sold the bond to DEF Inc.for $365,000.On that date,XYZ,a 90 percent owner of DEF,had a $450,000 carrying amount for this bond.
-Based on the information given above,what was the effect of DEF's purchase of XYZ's bond on the amount of retained earnings reported in XYZ's June 30,2008,consolidated balance sheet?

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The Answer of ABC,a holder of a $400,000 XYZ Inc.bond,collected the interest due on June 30,2008,and then sold the bond to DEF Inc.for $365,000.On that date,XYZ,a 90 percent owner of DEF,had a $450,000 carrying amount for this bond.
-Based on the information given above,what was the effect of DEF's purchase of XYZ's bond on the amount of retained earnings reported in XYZ's June 30,2008,consolidated balance sheet?

ABC,a Holder of a $400,000 XYZ Inc