Ford Motor Company includes the following table in its 2012 Form 10-K. The table reports the ownership percentages and carrying value of equity method investments (in millions, except percentages):

a. What does Ford report on its balance sheet at December 31, 2012, for its investment in equity method affiliates? Does this reflect the adjusted cost or fair value of Ford's interest in these companies?

b. What is the total stockholders' equity of the Changan Ford Mazda Engine Company affiliate at the end of 2012? Explain.

c. Ford owns \(100 \%\) of the voting stock of Ford Romania yet this investment is not consolidated. Explain. How might this accounting for the Romanian investment using the equity method impede our analysis and interpretation?

d. Assume that Jiangling Motors paid no dividends in 2012. Determine Jiangling's net income for the year.

e. Explain why Ford has so many equity-method investments.

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Automotive Sector Changan Ford Automobile Corporation, Ltd Changan Ford Mazda Automobile Corporation, Ltd Jiangling Motors Corporation, Ltd... AutoAlliance International, Inc. Ford Otomotiv Sanayi Anonim Sirketi AutoAlliance (Thailand) Co., Ltd. FordSollers Netherlands B.V... Getrag Ford Transmissions GmbH. Ford Romania S.A.* ... Tenedora Nemak, S.A. de C.V... Changan Ford Mazda Engine Company, Ltd. DealerDirect LLC OEConnection LLC Percepta, LLC Blue Diamond Truck, S. de R.L. de C.V... Ford Performance Vehicles Pty Ltd.. Blue Diamond Parts, LLC... Automotive Fuel Cell Cooperation Corporation. Other... Total Automotive sector Ownership Percentage Investment Balance December December December 31, 2012 31, 2012 31, 2011 50.0% $ 990 30.0 41.0 50.0 50.0 50.0 100.0 6.8 25.0 97.7 50.0 45.0 25.0 49.0 25.0 30.0 Various - 419 - 394 391 407 242 63 73 50 25 20 9 11 5 4 54 $3,112 468 373 372 369 367 361 229 92 68 33 18 13 7 7 6 4 4 6 $2,797