Chapter 8, Problem 8.27.7BP

To determine

Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company. Retirement of bond means repurchasing bonds from the investors that had been previously issued. It can be retired on the maturity date or before the maturity also. Once bond is retired then issuer eliminate the bond payable liability from his books.

To choose: The correct answer.