Loss on the constructive retirement instead of a gain

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Reference no: EM131535249

1. Why would one company acquire the debt of an affiliated company? What circumstances would need to exist, economically and otherwise, to make this a sound business decision?

2. Discuss the motivations a company has to acquire the debt of one of its affiliates. Does the motivation differ in the situation in which the consolidated entity would report a loss on the constructive retirement instead of a gain?

Reference no: EM131535249

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