Portuguese Owns 80 Percent of the Common Stock of Spanish

Portuguese owns 80 percent of the common stock of Spanish Company.Portuguese also purchases some of Spanish's bonds directly from Spanish and holds the bonds as a long-term investment.How is the acquisition of the bonds treated for consolidated reporting purposes?

A) As a retirement of bonds.
B) As an increase in the Bonds Payable account on Spanish's books.
C) Everything related to the intercompany bonds is eliminated in the consolidation worksheet,and nothing related to the bonds appears in the consolidated financial statements.
D) As an increase in noncurrent assets.