Consolidated financial statements are typically prepared when one company has a controlling financial interest in another - UNLESS?

C) Correct Answer.The Investee is in Bankcruptcy

Answer C is the right option .

dears thanks for answers  

answer is :   (c) A subsidiary should not be consolidated when

it is in bankruptcy. Consolidation of all majority-owned

subsidiaries is required regardless of the industry or business

of the subsidiary. A difference in fiscal periods of a parent

and a subsidiary does not of itself justify the exclusion of the

subsidiary from consolidation.

from Wiley CPA Study Guide

page  Question7

ASC  SFAS  , Business Combination and Consolidation 

agree with answer C >>>>>>>>>>>>>>>>>>>>>>>>>>>>

Till the subsidiary company that is investee becomes bankrupt.

answer C is the correct answer

thanks

d. The two companies are in unrelated industries, such as manufacturing and real estate.

The subsidiary is a finance company.

b. The fiscal year-ends of the two companies are morethan three months apart.

Not required to consolidate  when the parent company's business operation are considerably different than that of it subsidiary.