For Gains on Intercompany Bond Holdings, Which Method of Allocating

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

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

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