Why might a subsidiary decide to issue new shares of common stock to parties outside the business combination?

When a company acquires an affiliated company's debt instruments from a third party, how the gains or loss on extinguishment of the debt calculated? When should this balance be recognized?

In acquisitions, often the acquired company has both preferred stock and common stock. What impact do the two types of stock have on the acquisition, if any? On future reporting/consolidation processes?

What are the requirements for creating a statement of cash flows for a business combination? Explain