Final answer:
From a consolidated reporting viewpoint, when an affiliate within a consolidated group acquires the debt of another affiliate, the debt is eliminated to ensure accurate representation of the group's financial status as a single entity.
Step-by-step explanation:
When one affiliate within a consolidated group acquires the debt of another affiliate from a third party, from a consolidated reporting viewpoint, the debt is eliminated. This is because intra-group transactions are eliminated during the consolidation process to avoid double counting and to present the financial position and results of the entire group as if it were a single entity. So, the correct answer is: a) Debt is eliminated.