In general, consolidated financial statements should be prepared

A) when a corporation owns more than 20% and less than 40% of the common stock of another company
B) when a corporation owns more than 50% of the common stock of another company
C) only when a corporation owns 100% of the common stock of another company
D) whenever the market value of the stock investment is significantly lower than its cost

Consolidated financial statements should be prepared when a corporation owns more than 50% of the common stock of another company. This is because ownership of more than 50% means that the controlling company has a majority stake and therefore has control over the operations and financial decisions of the subsidiary. As a result, the financial statements of the controlling company and its subsidiary need to be combined in order to provide a complete and accurate picture of the overall financial health of the consolidated entity.