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Question - Holmes, a holder of a $800,000 Miller Inc. bond, collected the interest due on June 30, 20X8, and then sold the bond to Devon Inc. for $730,000. On that date the bond issuer, Miller, a 90 percent owner of Devon, had a $900,000 carrying amount for this bond.
A) Based on the information given above, what amount of gain or loss on bond retirement was recorded?
B) Based on the information given above, what was the effect of Devon's purchase of Miller's bond on the non controlling interest amount reported in Miller's June 30, 20X8, consolidated balance sheet?
Including the text of the Code section that provides the limitation.
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