Assume an investor company purchased a controlling financial interest in 100% of the outstanding voting common stock of an investee. Which of the following statements is false about the investor's pre-consolidation bookkeeping and/or the post-consolidation financial reporting in the investor's published financial statements? (Ignore any potential effects of intercompany transactions between the investor and the investee.)

1. In its published financial statements, the investor must consolidate the investee.
2. If the investor applies equity method, the balance of the pre-consolidation investment in investee account will equal 100% of the investee's stockholders' equity, adjusted for 100% of the unamortized differences between the investee's net asset fair values and book values (i.e., for gross differences initially determined as of the date of investment in the investee).
3. In its pre-consolidation accounting records, the investor can use any investment-accounting method it chooses.
4. The investor company can make an irrevocable election to report the Equity Investment at fair value, even if the investor has control over the investee.