May I know what areas I that are in error and the correction explanation? Thank you.

Interpreting Equity Method Investment Footnotes AT&T reports the following footnote to its 2015 10-K report. Equity Method Investments Investments in partnerships, joint ventures and less than majority-owned subsidiaries in which we have significant influence are accounted for under the equity method . . . The following table is a reconciliation of our investments in equity affiliates as presented on our consolidated balance sheets.

$ millions	2015	2014
Beginning of year	$472	$4,082
Additional investments	77	226
DIRECTV investments acquired	1,232	-
Equity in net income of affiliates	86	175
Dividends and distributions received	(30)	(148)
Sale of America Movil shares	-	(3,817)
Other adjustments	(2)	(46)
End of year	$1,835	$472

Undistributed earnings from equity affiliates were $162 and $88 at December 31, 2015 and 2014.

a. At what amount is the equity investment in affiliates reported on AT&Ts balance sheet? $Answer million b. Did affiliates pay dividends in 2015?

Yes, the receipt of dividends would reduce the balance of the equity method investment account, which is shown in the table.

No, the receipt of dividends would increase the balance of the equity method investment account rather than reduce it as shown in the table.

Not enough information is provided to determine if the affiliates paid dividends in 2015.

c. How much income did AT&T report in 2015 relating to this investment in affiliates? $Answer million d. Interpret the AT&T statement that undistributed earnings from equity affiliates were $162 and $88 at December 31, 2015 and 2014.

Undistributed earnings are earnings that have been paid out as dividends; this amount is retained earnings of the affiliates at year-end.

Undistributed earnings are earnings that have not yet been paid out as equity income; this amount is included in AT&T's retained earnings at year-end.

Undistributed earnings are earnings that have not yet been paid out as dividends; this amount is retained earnings of the affiliates at year-end.

Undistributed earnings are earnings that have not yet been paid out as dividends; this amount is included in AT&T's AOCI at year-end.