What is the effect of eliminating intercompanyinterest income and interest expense onconsolidated net income when a loss on bondretirement has been reported in a prior year'sconsolidated financial statements as a result of aconstructive retirement of an affiliates bonds?Explain. How would the relationship of interest incomerecorded by a subsidiary and the interest expenserecorded by the parent be expected to change whencomparing a direct placement of the parent's bondswith the subsidiary to a constructive retirement inwhich the subsidiary purchases the bonds of aparent from a nonaffiliate? When an affiliates bonds are purchases from anonaffiliate during the period, what balances will bestated incorrectly in the consolidated financialstatements if the intercompany bond ownership isnot eliminated in preparing the consolidatedworksheet? For a multicorporate entry, how is the recognitionof gains or losses on bond retirement changed whenemphasis is placed on the economic entity ratherthan the legal entity