When bonds are purchased in the market by an affiliate, the book value of the in

Question

When bonds are purchased in the market by an affiliate, the book value of the inter company bond liability is: a. The par value of the bonds less unamortized issuance costs and less unamortized discount or plus unamortized premium. b. The par value of the bonds less insuances costs, less unamortized discount or plus unamortized premiums, and less the costs incurred to purchase the bond investment. c. The par value of the bonds. d. The par value of the bonds less the discount or plus the premium at issuance.

Explanation / Answer

Option D which is The par value of the bonds less the discount or plus the premium at issuance is correct answer

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