The Parent Company Leased a Machine to Its Subsidiary Using $\quad$

Short Answer

The parent company leased a machine to its subsidiary using a direct-financing lease that included a bargain purchase option.As a result of the intercompany lease, the following items should be eliminated in the consolidation process: ?
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Depreciation }$
$\begin{array}{llll}\text { Machine}&\text { Debt }&\text { Interest}&\text { Expense }\\\end{array}$
A) $\begin{array}{llll}\text { Yes } && \text { Yes } & &\text { Yes } && \text { Yes } \\\end{array}$
B) $\begin{array}{llll}\text { Yes } && \text { Yes } && \text { Yes } && \text { No } \\\end{array}$
C) $\begin{array}{llll}\text {Yes } && \text { No }&&& \text { No } && \text { No } \\\end{array}$
D) $\begin{array}{llll}\text { No } && \text { Yes }&& \text { Yes }&& \text { No }\end{array}$