Ek & Co., Inc. (MRK) M9-16. Interpreting Disclosures on Investments in Affiliates (LO2) Merck's 10-K report included the following footnote disclosure: Investments in affiliates accounted for using the equity method ... totaled $1.3 billion December 31, 2012... These amounts are reported in other assets. a. At what amount are the equity method investments reported on Merck's balance sheet? Does th amount represent Merck's adjusted cost or fair value? b. How does Merck account for the dividends received on these investments? c. What sources of income does the company report for these investments? M9-17 Computing Consolidating dinstments and Nonommallin