if at the time of formation the spe is determined to be a variable interest entity s 605544

Morton Inc., Gilman Co., and Willis Corporation established a special-purpose entity (SPE) to perform leasing activities for the three corporations. If at the time of formation the SPE is determined to be a variable interest entity subject to consolidation, which of the corporations should consolidate the SPE?

1. The corporation with the largest interest in the entity.
2. The corporation that will absorb a majority of the expected losses if they occur.
3. The corporation that has the most voting equity interest.
4. Each corporation should consolidate one-third of the SPE.