3. With regard to a variable interest entity (VIE), Plutarco Company may meet the following two conditions: Condition I Plutarco Company has the power to direct VIE activities that significantly impact VIE's economic performance. Condition II Plutarco Company has an obligation to absorb losses and/or a right to receive significant benefits from the VIE Plutarco Company must consolidate a VIE if A. Condition I met only. B. Condition II met only. C. either Condition I or Condition II met. D. both Condition I and Condition II met. 4. Which of the following statements about variable interest entities (VIE) is false? A. under GAAP a VIE may be a corporation, partnership, limited liability company or trust. B. under GAAP, pension plans are excluded from VIE accounting. C. A potential VIE must be a separate entity, not a subset, branch or division of another entity. D. VIEs do not require the identification of a primary beneficiary