I have the following company :
Share capital -100
Accumulated loss 550
Parent buys the company by issuing its 250 of its own shares valued @ $1 each = $250
How do I firstly bring this into the companys books and then consolidation entries.
Dr Investement in sub 100 (created so when I consolidate the investment equals the share capital of subsidiary)
Dr Negative goodwill 150 (to profit/loss)
Cr Share capital -250 (raise shares issed)
Dr Share capital 100
Cr Investment in sub -100
Is this the correct handling of this acquisition?