USA Debt Retirement Gains/Losses By Consolidated Entity

[YelloJacket]

Once again I am a not a professional accountant, so please bear with me.

I was studying about consolidation of entities having intercompany debt transactions.

1. Say there is a Parent having 80% stake in Subsidiary. 20% is therefore non-controlling interest. For simplicity let's say for example that Subsidiary issues 1,000,000$ of 10% 10yrs bonds to a non-affiliate at par.

2. Now next year the Parent purchases back (retires) this bond by purchasing the bond back from non-affiliate for 1.2 Million $.

3. Hence there is a debt retirement loss of 200,000$

Now the question. Why would this 200,000$ of loss be apportioned to parent (80%) and non-controlling interest (20%) in consolidated financial statements?

To me the entire loss seem to accrue purely and solely to the parent. The same can be said about gains realized by purchasing bonds back at discount. Yet the book I am reading "Advanced Financial Accounting" by Christensen Cottrell Budd clearly states the gain(loss) must be apportioned between Controlling and NCI. Why?

 

[kirby]

Can you post the original question verbatim, please?

 

[YelloJacket]

This is actually my own question. I just want to understand why gains/losses on subsidiarys debt retirement by parent will be shared by NCI of subsidiary.