Which of the following statements is false regarding the assignment of a gain or loss on intercompany bond transfer?
A) Subsidiary net income is not affected by a gain on bond transaction.
B) Subsidiary net income is not affected by a loss on bond transaction.
C) Parent Company net income is not affected by a gain on bond transaction.
D) Parent Company net income is not affected by a loss on bond transaction.
E) Consolidated net income is not affected by a gain or loss on bond transaction.

Question

Quizplus · Accepted Answer

Consolidated net income is affected by a gain or loss on intercompany bond transactions because these transactions are eliminated in consolidation, impacting the overall financial results.

Which of the Following Statements Is False Regarding the Assignment