Which of the following statements is true concerning the acquisition of existing debt of a consolidated affiliate in the year of the debt acquisition? Any gain or loss is deferred on a consolidated income statement. Consolidated retained earnings is adjusted for the difference between the purchase price and the carrying value of the bonds. Any gain or loss is recognized on a consolidated income statement. Interest expense on the affiliated debt is recognized on a consolidated income statement. Interest revenue on the affiliated debt is recognized on a consolidated income statement.