Entity a and Entity B Agree to Merge

Multiple Choice

Entity A and Entity B agree to merge.The capital structure of each entity is:
Entity A - 100 ordinary shares
Entity B - 60 ordinary shares
Entity A issues 2.5 shares in exchange for each ordinary share of Entity B.All of Entity B's shareholders exchange their shares for Entity A shares.
Which of the following statement is correct?

A) Entity A is both the parent and the acquirer in the transaction.
B) Entity B is both the parent and the acquirer in the transaction.
C) Entity A is the parent and Entity B is the acquirer in the transaction.
D) Entity B is the parent and Entity A is the acquirer in the transaction.