7-14 (LO 7-1) On January 1, 2012, Aspen Company acquired 80 percent of Birch Companys outstanding voting stock for $452,000. Birch reported a $505,000 book value and the fair value of the noncontrolling interest was $113,000 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $112,000 when Cedar had a $104,000 book value and the 20 percent noncontrolling interest was valued at $28,000. In each acquisition, the subsidiarys excess acquisition-date fair over book value was assigned to a trade name with a 30-year life. These companies report the following financial information. Investment income figures are not included. 2012 2013 2014 Sales: Aspen Company $ 517,500 $ 715,000 $ 935,000 Birch Company 294,500 368,000 594,600 Cedar Company Not available 247,100 223,400 Expenses: Aspen Company $ 477,500 $ 495,000 $ 557,500 Birch Company 241,000 305,000 510,000 Cedar Company Not available 236,000 181,000 Dividends declared: Aspen Company $ 18,000 $ 45,000 $ 55,000 Birch Company 10,000 18,000 18,000 Cedar Company Not available 2,000 6,000 Assume that each of the following questions is independent: a. If all companies use the equity method for internal reporting purposes, what is the December 31, 2013, balance in Aspen's Investment in Birch Company account? Investment in Birch = b. What is the consolidated net income for this business combination for 2014? Consolidated Net Income = c. What is the net income attributable to the noncontrolling interest in 2014? Noncontrolling Interest's share of the Consolidated Net Income = d. Assume that Birch made intra-entity inventory transfers to Aspen that have resulted in the following unrealized gross profits at the end of each year: Date Amount 12/31/12 $19,700 12/31/13 20,300 12/31/14 25,600 What is the realized income of Birch in 2013 and 2014, respectively