Dr Pepper Museum and Free Enterprise

“The museum has elected to not capitalize their collectible items as an asset on the statement of financial position. Purchased collection items are recorded as decreases in net assets in the year in which the items are acquired. Contributed collection items are excluded from the financial statements. Proceeds from deaccessions or insurance recoveries are reflected as increases in the appropriate net asset classes.”

“The dr pepper museum has permanent ownership of objects, artifacts, written records, computer records, film, video, sound recordings, machine-readable data and other materials, which document, reflect and aid in understanding and interpreting the soft drink industry in the united states, and specifically the beverage known as dr pepper. The museum collects materials relevant to its own history and development. The museum also accepts materials related to free enterprise economics as it relates to the history and growth of the soft drink industry. All new collections acquired are selected to enhance the cultural and educational value of the museum's exhibitions and educational programs.”

“The purpose of the museum's permanent and quasi-endowment funds is to provide operating budget support for the institution.”

“The dr pepper museum and free enterprise institute is an organization generally exempt from federal income tax under section 501(c)(3) of the internal revenue code ("irc"), though it would be subject to tax on income unrelated to its exempt purposes (unless that income is otherwise excluded by the irc). Dpm asset management, inc. Is an organization generally exempt from federal income tax under section 501(c)(2) of the irc. The dr. Pepper museum and free enterprise institute and dpm asset management, inc. Have concluded that no tax benefits or liabilities should be recognized in accordance with accounting principles generally accepted in the united states of america ("gaap"). The last three tax years remain open to examination by taxing authorities. Dp museum enterprises, inc. Is a c corporation for federal income tax purposes. Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes on temporary differences between the amount of taxable income and pretax financial income and between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are included in the combined and consolidated financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. In addition, deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The corporation does not have uncertain tax positions that are deemed material and did not recognize any adjustments for unrecognized tax benefits. The corporation's policy is to recognize interest and penalties on income taxes in other noninterest expenses. The corporation remains subject to examination for income tax returns for the prior three years.”