Parent 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:
a. Machine under Capital Lease Obligation Interest Expense Depreciation Expense
Yes Yes Yes Yes
b. Machine under Capital Lease Obligation Interest Expense Depreciation Expense
No Yes Yes No
c. Machine under Capital Lease Obligation Interest Expense Depreciation Expense
Yes Yes Yes No
d. Machine under Capital Lease Obligation Interest Expense Depreciation Expense
Yes No No No