The Purchase of Outstanding Subsidiary Bonds by the Parent Company

Multiple Choice

The purchase of outstanding subsidiary bonds by the parent company has the same impact on consolidated statements as:​

A) ​the subsidiary retiring its own debt with the proceeds of new debt issued to outside parties.
B) ​the subsidiary retiring the debt with the proceeds of a loan from the parent.
C) ​the subsidiary retiring the debt with the proceeds of a new stock issue.
D) ​allowing the bonds to continue to be held by outside interests.