On january 1, 2019, an investor purchases 32,000 common shares of an investee at $11 (cash) per share. the shares represent 24% ownership in the investee. the investee’s common stock does not have a readily determinable fair value. on january 1, 2019, the book value of the investee’s assets and liabilities equals $1,700,000 and $600,000, respectively. on that date, the appraised fair values of the investee’s identifiable net assets approximated the recorded book values, except for a customer list. on january 1, 2019, the customer list had a recorded book value of $0, an estimated fair value equal to $90,000 and a 5 year remaining useful life. during the year ended december 31, 2019, the investee company reported net income equal to $120,000 and dividends equal to $40,000. on december 31, 2019, the fair value of the investee’s stock is $15 per share. noncontrolling investment accounting (price different from book value) assume the investor can exert significant influence over the investee. determine the balance in the "investment in investee" account at december 31, 2019. $432,000

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum.should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?