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answer a, b, c, d On January 1, 2019, Aspen Company acquired 80 percent-of Birch Company's voting stock for $392,000. Birch reported a $355,000 book
answer a, b, c, d
On January 1, 2019, Aspen Company acquired 80 percent-of Birch Company's voting stock for $392,000. Birch reported a $355,000 book value, and the fair value of the noncontrolling interest was $98,000 on that date. Then, on January 1,2020, Birch acquired 80 percent of Cedar Company for $228,000 when Cedar had a $204,000 book value and the 20 percent noncontrolling interest was valued at $57,000. 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. 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 31,2020 , balance in Aspen's Investment in Birch Company account? b. What is the consolidated net income for this business combination for 2021 ? c. What is the net income attributable to the noncontrolling interest in 2021 ? d. Assume that Birch made intra-entity inventory transfers to Aspen that have resulted in the following intra-entity gross profts in inventory at the end of each year: What is the accrual-based net income of Birch in 2020 and 2021 , respectively? Complete this question by entering your answers in the tabs below. Assume that Birch made intra-entity inventory transfers to Aspen that have resulted in the following intra-entity gross profits in :-2... at the ond of each year: What is the accrual-based net income of Birch in 2020 and 2021, respectivetyr Step by Step Solution
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