Intermediate Accounting, Thirteenth Edition

Chapter 17. INVESTMENTS

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

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Who's in Control Here?

The Coca-Cola Company (Coke) owns 36 percent of the shares of Coca-Cola Enterprises (a U.S. bottling business); PepsiCo Inc. owns 46 percent of The Pepsi Bottling Group (PBG) and 41 percent of PepsiAmericas. These bottling businesses are very important to Coca-Cola and PepsiCo because they are the primary distributors of Coke and Pepsi products. In return, these companies depend on Coca-Cola and PepsiCo to provide significant marketing and distribution development support. Indeed, it can be said that Coca-Cola and PepsiCo control the bottling companies, who would not exist without ...