Problem 2. On January 2, 2011, Coca-Cola Company acquired 45% of the stocks of Coca-Cola FEMSA for $30 million in cash. Coca-Cola Company accounts for its investment using the equity method. At the time of acquisition, Coca-Cola FEMSA balance sheet was as follows (in millions):

Assets		Liabilities and equity
Current Assets	20	Current liabilities	42
Property and equipment, net	415	Long-term debt	518
Patents and trademarks	150	Capital Stock	12
Total Assets	585	Retained Earnings	13
		Total Liabilities and Equity	585

Valuation of Coca-Cola FEMSA assets and liabilities revealed that its reported patents and trademarks (10-year life) had a fair value of $160 million and it had unrecognized brand names (15- year life) worth $9 million. Coca-Cola FEMSAs December 31, 2014, retained earnings balance is $25 million. For 2014, it reported net income of $2.5 million and paid $650,000 in dividends.

Required:

1. Prepare the 2014 entries to report the above information on Coca-Cola books? Show all your calculations (1 points)

2. Calculate the Investment in Coca-Cola FEMSA balance, reported on Coca-Cola December 31, 2014 Show all your calculations (3 points)