On January 2, 2011, Best Beverages acquired 21 percent of the stock of Better Bottlers for $24 million in cash. Best Beverages accounts for its investment using the equity method. At the time of acquisition, Better Bottlers' balance sheet was as follows (in millions): Better Bottlers Balance Sheet, January 2, 2011 (in millions) Assets Current assets $16 Property and equipment, net 332 Patents and trademarks 120 Total assets 468 Liabilities and equity Current liabilities 33.6 Long-term debt 414.4 Total liabilities 448 Capital stock 9.6 Retained earnings 10.4 Total equity 20 Total liabilities and equity $468 At the date of acquisition, valuation of Better Bottlers' assets and liabilities revealed that its reported patents and trademarks (8-year life) had a fair value of $128 million and it had unrecognized brand names (9-year life) worth $7.2 million. Several years later, Better Bottlers' December 31, 2014 retained earnings balance is $20 million. For 2014, it reported net income of $2 million and paid $520,000 in dividends. For all answers below, enter the complete figures using all zeros. For example, $1 million should be entered as 1,000,000. (a) Prepare the 2014 entries to report the above information on Best Beverages' books.

Why is investing in a mutual fund less risky than investing in a particular company’s stock?

Coop inc. owns 40% of chicken inc., both coop and chicken are corporations. chicken pays coop a dividend of $10,000 in the current year. chicken also reports financial accounting earnings of $20,000 for that year. assume coop follows the general rule of accounting for investment in chicken. what is the amount and nature of the book-tax difference to coop associated with the dividend distribution (ignoring the dividends received deduction)?

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum. should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?