Dear Corporation Acquired 100 Percent of the Voting Shares of Therry

question 52

Essay

Dear Corporation acquired 100 percent of the voting shares of Therry Inc.by issuing 10,000 new shares of $5 par value common stock with a $30 market value.
Required:
1.Which company is the parent and which is the subsidiary?
2.Define a subsidiary corporation.
3.Define a parent corporation.
4.Which entity prepares consolidated worksheet?
5.Why are consolidation entries used?

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Definitions:

Puberty

Represents the developmental period in which an individual becomes capable of reproduction, marked by physical changes and hormonal shifts.

Vocational Training

Education or instruction that prepares individuals for specific trades, crafts, professions, or careers.

Marijuana

A psychoactive drug derived from the Cannabis plant, used for medical or recreational purposes.

Middle School

An educational institution that caters to students typically in the adolescence stage, serving as a bridge between elementary school and high school.