Gill Ltd Is the Wholly Owned Subsidiary of Basaraba Ltd

Gill Ltd. is the wholly owned subsidiary of Basaraba Ltd. Gill purchased all of Basaraba's outstanding bond issue on the open market at a discount. The bonds have an unamortized premium attached. This transaction, in effect, retires the bond and results in a gain. How should the gain be shown?

A) It will appear on Basaraba's separate-entity statement of comprehensive income only.
B) It will appear on both Basaraba's separate-entity and consolidated statements of comprehensive income.
C) It will appear on Basaraba's consolidated statement of comprehensive income only.
D) It will be added to the value of the bonds payable on Basaraba's statement of financial position.

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