A subsidiary has a debt outstanding that was originally issued at a discount. At the beginning of the current year, the parent company acquired the debt at a slight premium from outside parties. Which of the following statements is true?
A - The interest income and interest expense will agree in amount and should be offset for consolidation purposes.
B - Whether the balances agree or not, both the subsequent interest income and interest expense should be reported in a consolidated income statement.
C - Although subsequent interest income and interest expense will not agree in amount, both balances should be eliminated for consolidation purposes.
D - In computing any noncontrolling interest allocation, the interest income should be included but not the interest expense.