Intercompany Transactions F10-21b

What are the 2  intercompany bond consequences?

1. When one affiliate acquires the bonds of another affiliate, for consolidated purposes it is as though the bonds have been retired; they have been constructively retired for consolidated purposes.
2. Therefore on the consolidating worksheet, the bonds payable (and related accounts) brought on by the issuing company must be eliminated against the investment in bonds brought on by the buying affiliate.