On January 2, 2011, Best Beverages acquired 45 percent of the stock of Better Bottlers for $40 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 $30

Property and equipment, net 415

Patents and trademarks 170

Total assets 615

Liabilities and equity Current liabilities 50

Long-term debt 535

Total liabilities 585

Capital stock 14

Retained earnings 16

Total equity 30

Total liabilities and equity $615

Valuation of Better Bottlers' assets and liabilities revealed that its reported patents and trademarks (10-year life) had a fair value of $180 million and it had unrecognized brand names (15-year life) worth $9 million. Better Bottlers' December 31, 2014, retained earnings balance is $35 million. For 2014, it reported net income of $3 million and paid $750,000 in dividends.

For all answers below, enter the complete figures using all zeros. For example, $1 million should be entered as 1,000,000.

Required

(a) Prepare the 2014 entries to report the above information on Best Beverages' books.

(b) Calculate the Investment in Better Bottlers balance, reported on Best Beverages' December 31, 2014 balance sheet.