The accounting problems encountered in consolidated intra$-$entity debt transactions when the debt is acquired by af affiliate from an

outside party include all of the following except.

Multiple Choice

Subsequent interest revenue$/$expense must be removed although these balances fail to agree in amount.

at$.$

Both the investment and debt accounts have to be eliminated now and for each future consolidated financial statement

despite containing differing balances.

A gain or loss must be recognized by both parent and subsidiary companies.