4. XYZ Company buys 60 percent of the voting stock of ABC Company with the remaining 40 percent noncontrolling interest held by ABC's former owners, who negotiated the following noncontrolling rights: a. Any new debt above $1,000,000 must be approved by the 40 percent noncontrolling shareholders. b. Any dividends or other cash distributions to owners in excess of customary historical amounts must be approved by the 40 percent noncontrolling shareholders. According to the FASB ASC, what are the criteria in determining whether XYZ should consolidate ABC or report its investment in ABC under the equity method? Provide a recommendation and justification on what XYZ should do in each of the two situations described above.