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 workpapers?
5)Why are elimination entries used?

Question

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The Answer of 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 workpapers?
5)Why are elimination entries used?

Dear Corporation Acquired 100 Percent of the Voting Shares of Therry