Pocket Corporation acquired 100 percent of the voting shares of Sleeve 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 the consolidated worksheet?
5.Why are consolidation entries used?

Question

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The Answer of Pocket Corporation acquired 100 percent of the voting shares of Sleeve 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 the consolidated worksheet?
5.Why are consolidation entries used?

Pocket Corporation Acquired 100 Percent of the Voting Shares of Sleeve