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E9-35. Interpreting Equity Method Investment Footnotes Ford Motor Company includes the following table in its 2018 Form 10-K. The table reports the own- ership percentages

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E9-35. Interpreting Equity Method Investment Footnotes Ford Motor Company includes the following table in its 2018 Form 10-K. The table reports the own- ership percentages and carrying value of equity method investments (in millions, except percentages). Investment Balance Ownership Percentage Automotive Sector 2017 2018 December 31, 2018 Changan Ford Automobile Corporation, Limited . . .. $1.144 $ 950 50.0% Jiangling Motors Corporation, Limited 675 543 32.0 AutoAlliance (Thailand) Co., Lid. . . . . . . 439 431 50.0 Ford Otomotiv Sanayi Anonim Sirketi. . . 329 247 41.0 Getrag Ford Transmissions GmDH....... . .. .: 222 236 50.0 FFS Finance South Africa (Pty) Limited..... . . . 71 81 50.0 Changan Ford Mazda Engine Company, Lid. B4 71 25.0 lonity Holding GmbH & Co. KG ...... . . . . . .1 12 42 25.0 DealerDirect LLC....... . . . . .18.14 33 33 97.7 RouteOne LLC .... . . . . 24 31 30.0 Thirdware Solutions Limited. . . . . . 12 12 20.0 Percepta, LLC..... .281 B 10 45.0 Chongqing ANTE Trading Co., Lid. ....... ..... 10.0 U.S. Council for Automotive Research LLC . . . . . . . 33.3 Crash Avoidance Metrics Partnership LLC...... .. . 50.0 Blue Diamond Parts, LLC.......84148:14 25.0 CNF-Administradora de Consorcio Nacional Lida.. . . 33.3 Automotive Fuel Cell Cooperation Corporation . . . . . 10 49.9 Total Automotive sector . . . . . $3.085 52.709a. What does Ford report on its balance sheet at December 31, 2018, for its investment in equity method affiliates? Does this reflect the adjusted cost or fair value of Ford's interest in these companies? b. Approximate the total stockholders' equity of the Changan Ford Mazda Engine Company at the end of 2018. Explain. c. Ford owns 97.7% of DealerDirect LLC yet this investment was not consolidated. Speculate on why this might be the case. d. Assume Getrag Ford Transmission GmbH paid no dividends in 2018. Determine Getrag's net income for the year. e. Explain why Ford has so many equity-method investments. f. Ford's 2018 income statement included income from equity method investments of $1,780 million. Approximate the dividends and distributions that Ford received from the equity method affiliates during 2018

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