INTERCOMPANY BOND HOLDINGS AND MISCELLANEOUS TOPICS—CONSOLIDATED FINANCIAL STATEMENTS
Describe the term “constructive retirement of debt.”
Describe how the gain or loss on constructive retirement of intercompany bond holdings is allocated between the purchasing and issuing companies.
Explain the impact on the consolidated financial statements when a company issues a note to an affiliated company, which then discounts the note with an outside company.
Determine the effect on the consolidated financial statements when a subsidiary issues a stock dividend.
Understand the difference in how stock dividends and cash dividends issued by a subsidiary company affect the consolidated financial statements.
Determine the impact on the investment account when a subsidiary issues ...