Which of the following methods of allocating the gain or loss on an intercompany bond retirement is the soundest conceptually?
A) The gain (loss) is allocated to the company that issued the bonds.
B) The gain (loss) is allocated to the company that purchased the bonds.
C) The gain (loss) is allocated to the parent company.
D) The gain (loss) is allocated between the purchasing and issuing companies.
Correct Answer:
Verified
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