When a company acquires all of the common stock of a subsidiary,the books of the subsidiary are no longer used.

Question

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The books of the subsidiary are still used even after the parent company acquires all of the common stock. The subsidiary continues to operate as a separate entity and its financial statements must still be recorded and reported. However, the financial statements of the subsidiary will be consolidated with those of the parent company.

When a Company Acquires All of the Common Stock of a Subsidiary,the