A North Dakota Telecommunication Company Sold "The Contractual Right to a 5-Year

A North Dakota telecommunication company sold "the contractual right to a 5-year supply of transmission capacity" to another telecommunication company in an all-cash transaction.The price was deliberately set above fair market value.The buyer,located in San Jose,California,in turn sold an equivalent amount of "5-year transmission capacity" to the North Dakota telecommunications company at an equally inflated price in an all-cash transaction.
a. Does this affect the North Dakota companies' net cash flow?
b. Does it affect the North Dakota company's reported assets?
c. Does it affect the North Dakota company's revenues in the year of sale?
d. Does it affect the North Dakota company's long-term profitability?
e. Why do you think that this company entered into this transaction?
f. Would you describe this transaction as a "round-trip" transaction? Why or why not?
g. How can auditors ensure that abusive transactions such as this one do not deceive the investing public?