Excerpts from Molson Coors Brewing Company (MCBC)'s 2007 annual report indicates that it consolidates four joint ventures found to be VIEs, as follows:

Required
a. Indicate the likely qualitative reasons that the four joint ventures were found to be VIEs.
b. MCBC reports the following amounts:

Comment on the significance on MCBC'S financial results of consolidating the VIEs.
c. MCBC states: "Our share of the pre-tax joint venture profits for each of these investments was offset against cost of goods sold in our Consolidated Statements of Income." Comment on the propriety of this accounting treatment.

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For years ended December 30, 2007 December 31, 2006 December 25, 2005 Total Pre-tax Total Pre-tax Total Pre-tax in thousands) Assets Revenues income Assets' Revenues income Assets' Revenues income Al$442.704 $274,419 $ 2212 $332,613 $263,570 $ 136 $324.160 180,562- RMMC RMBC 66,498 295,114 5,809 66,427 245,371 12.346 54,411219,365 8.925 0,998 95,546 20,206 36,59296,009 19,056 42.756 90,855 15,438 Grolsch.30,141 77,583 9 39219 7003 30,724 76,045 12.083 Net (in thousands) Total Assets Total Liabilities Income $6,302,175 5,786,057 $497,192 361,031 Year ended December 31, 2006. 1,603,413