b. Calculate the effect of that accounting choice on the follow- ing reported amounts for fiscal year 2000: (i) Net income (ii) Shareholders' equity (i) Return on assets (Assume a 35% tax rate.) 6. [Brand names] "Buildings age and become dilapidated. Ma- chines wear out. Cars rust. But what lives on are brands," argues Sir Hector Laing of Britain's United Biscuits (The Economist, December 24, 1988, p. 100).

a. Using this quotation as a point of departure, discuss the ad- vantages and disadvantages (from the point of view of finan- cial analysis of the balance sheet recognition of brand names.