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. 1. Under GAAP, the will include the variable interest entity in consolidated financial statements. A. special purpose entity B. limited Liability Company C. trust D. primary beneficiary 2. Entities other than the primary beneficiary account for their investment in a variable interest entity using the A. cost method. B. equity method. C. cost or equity methods. D. consolidated method. 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