Why should the net assets of consolidated statement operators be subtracted from the investment in Sun Company?

The consolidated statement operator's company's net assets are based on the consolidated statements of subsidiaries, not individual statements of subsidiaries. When the subsidiaries are merged, the long-term equity investment in Sun Company and the owner's equity of Sun Company should offset each other. The equity only reflects the owner's equity of the subsidiaries, and the assets and liabilities of the subsidiaries are reflected in the consolidated statements.