Consolidated financial statements Sun Co. is a wholly owned subsidiary of Star Co. Both companies have separate general ledgers, and prepare separate financial statements. Sun requires stand-alone financial statements. Which of the following statements is correct? A. Consolidated financial statements should be prepared for both Star and Sun. B. Consolidated financial statements should be prepared only by Star and not by Sun. C. After consolidation, the accounts of both Star and Sun should be combined together into one general-ledger account system for future ease in reporting. D. After consolidation, the accounts of both Star and Sun should be changed to reflect the consolidated totals for future ease in reporting