Accounting - Recording a merger?

Question

If a company purchases a subsidiary assets for $99,600 do you then record this cash as the liability for the merger as well as recording the debit assets?

Answer 1

what is the ownership percentage of the sub?

Answer 2

If you're acquiring the equity of the sub, then:

Dr  Investment in subsid $99,600

Cr  Cash $99,600

Answer 3

If they paid cash for the assets - you Credit the cash account.

If they financed the assets then it would be some form of Liability that would be credited, ex. notes payable. They could also purchase the assets with company stock. It all depends on how they financed the purchase.