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Question

With regard to a variable interest entity (VIE), Ann Company may meet the following two conditions:

Condition I

Ann Company has the power to direct VIE activities that significantly impact VIE's economic performance.

Condition II

Ann Company has an obligation to absorb losses and/or a right to receive significant benefits from the VIE.

Ann Company must consolidate a VIE if

A) Condition I is met only.

B) Condition II is met only.

C) either Condition I or Condition II is met.

D) both Condition I and Condition II are met.