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On January 1, 2016, Aspen Company acquired 80 percent of Birch Company's voting stock for $396,000. Birch reported a $420,000 book value and the fair value of the noncontrolling interest was $99,000 on that date. Then, on January 1, 2017, Birch acquired 80 percent of Cedar Company for $188,000 when Cedar had a $181,000 book value and the 20 percent noncontrolling interest was valued at $47,000. In each acquisition, the subsidiary's excess acquisition-date fair over book value was assigned to a trade name with a 30-year remaining life. These companies report the following financial information. Investment income figures are not included. 2016 2017 2018 Sales: Aspen Company $ 560,000 $ 790,088 $ 847,589 Birch Company 219,750 299, 250 582,000 Cedar Company Not available 188,500 290,800 Expenses: Aspen Company $ 525,000 $ 470,00 $ 657,500 Birch Company 162,880 239,000 582,500 Cedar Company Not available 177,000 241,000 Dividends declared: Aspen Company $ 15,800 $ 35,000 $ 45, eee Birch Company 15,000 18,000 18,000 Cedar Company Not available 3,000 8,888 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, 2017, balance in Aspen's Investment in Birch Company account? b. What is the consolidated net income for this business combination for 2018? c. What is the net income attributable to the noncontrolling interest in 2018? d. Assume that Birch made intra-entity inventory transfers to Aspen that have resulted in the following intra-entity gross profits in inventory at the end of each year: Date Amount 12/31/16 $19,600 12/31/17 19,400 12/31/18 29.400 12/31/16 $19,600 12/31/17 19,400 12/31/18 29,400 What is the accrual-based net income of Birch in 2017 and 2018, respectively? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A to C Req D a. If all companies use the equity method for internal reporting purposes, what is the December 31, 2017, balance in Aspen's Investment in Birch Company account? b. What is the consolidated net income for this business combination for 2018? c. What is the net Income attributable to the noncontrolling interest in 2018? Show less a $ b. Investment in Birch Consolidated net income Noncontrolling interests' share of the consolidated net income $ 466,208 315,000 32,680 c. $ RegD > 12/31/16 $19,600 12/31/17 19,400 12/31/18 29,400 What is the accrual-based net income of Birch in 2017 and 2018, respectively? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req Ato C ReqD Assume that Birch made intra-entity inventory transfers to Aspen that have resulted in the following intra-entity gross profits in inventory at the end of each year: Date Amount 12/31/16 12/31/17 12/31/18 $19,600 19,400 29,400 What is the accrual-based net income of Birch in 2017 and 2018, respectively? Show less Realized income 2017 56,450 2018 105,400 $