Chapter 1, Problem 38P

a.

To determine

Mention how the Company, GM account for its investments in joint ventures and how they will be reflected on GM’s balance sheets and also tells the method of income generation on these investments.

b.

To determine

Explain that the $505.3 million investment will be included in other assets on GM's

balance sheet adequately reflects the assets and liabilities needed to conduct GM 's

operations.

c.

To determine

Mention that the joint venture liabilities reflect GM 's real commitments.

d.

To determine

List the potential problems which the equity accounting method will create for the

purposes of analysis.