For Gains on Intercompany Bond Holdings,which Method of Allocating the Gain

For gains on intercompany bond holdings,which method of allocating the gain emphasizes substance over form?

A) Allocate the gain to the parent company as the parent company has ultimate control
B) Allocate the gain to the bond purchasing company as the bonds will be retired under consolidation
C) Allocate the gain to the bond issuing company under the agency approach
D) Allocate the gain between the issuing and purchasing companies under the par-value approach

Correct Answer:

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