Merck's 10-K report included the following footnote disclosure: investments in affiliates accounted for using the equity method... totaled $1.3 billion at December 31st,2012... These amounts are reported in Other assets. a. At what amount are the equity method investments reported on Merck's balance sheet? Does this amount represent Merck's adjusted cost or fair value? b. How does Merck account for th dividends received on these investments? c. What sources of income does the company report for these investments?