Which of the following is true about the entries necessary to consolidate the financial statements?

a. These entries are prepared each year based on the original balance sheet and income statement of the subsidiary on the date of acquisition.

b. These entries are posted neither to the parents ledgers nor to the subsidiarys ledgers

c. These entries are prepared by each of the parent and the subsidiary each year

d. All of these statements are correct

* ANSWER "A" WAS INCORRECT