Answer:
Calculation of 2014 equity in net income
Better Bottler's net income                      $1,125,000
($2,500,000* 45%)  
Less: Amortization of patents and           $450,000 
trademarks  revaluation
(160-150* 1000,000/10 at 45%)
Less: Amortization of brand names          $270,000
($9000,000 /15 at 45%)
Equity in net income of Better bottles   $405,000
                                 Journal entries
Description                                         Debit         Credit
Investment in better bottles        $405,000
Equity in net income of better bottle               $405,000
Cash                                                 $292,500
($650,000 * 45%)
investment in better bottles                             $292,500
b) Calculation of investment balance
Investment balance, Jan 2,2014                           $30,000,000
+ Reported income less dividends                         $5,400,000
($25,000,000 equity - $13,000,000 retained 
earnings) * 45%  
-  4 yr of revaluation write off                                
($450,000 * 4)                                                         $1,800,000
($270,000 *4)                                                         <u>$1,080,000</u>
Investment balance, Dec 31, 2017                      <u>$32,520,000</u>