The following describes a set of arrangements between TecPC Company and a special purpose entity (INVENT) as of December 31, 2017. Answer the following questions about INVENT. IS INVENT a VIE? Evaluate each of the three conditions. Determine which party, If any is the primary beneficiary. TecPC is planning to design and construct a new research and development (R&D) facility. TecPC establishes a Special Purpose Entity, INVENT whose sole purpose is to finance and own the R&D facility and lease it to TecPC Company after construction is completed Payments under the operating lease are expected to begin in the first quarter of 2019 INVENT has financing commitments sufficient for the construction project from equity and debt participants (investors) of $8 million and $42 million, respectively. The investor receive 100% nonvoting equity interest in INVENT. TecPC, in its role as the INVENT'S construction agent, is responsible for completing construction by December 31, 2018. TecPC has guaranteed a portion of the INVENT's obligations during the construction and post-construction periods. TecPC agrees to lease the R&D facility for five years with multiple extension options, The lease is a variable rate obligation indexed to a three-month market rate. As market interest rates increase or decrease, the payments under this operating lease also increase or decrease, sufficient to provide a return to the investors. If all extension options are exercised, the total lease term is 35 years. At the end of the first five-year lease term or any extension, TecPC may choose one of the following: 1. Renew the lease at fair value subject to investor approval. 2. Purchase the facility at its original construction cost. 3. Sell the facility on the INVENT's behalf to an independent third party. If TecPC sells the project and the proceeds from the sale are insufficient to repay the investors their original cost, TecPC must make a payment of $8 million to the equity investor