Hello,

Can someone help me with this problem I am stock, and could you please guide through the steps so I can learn how to do solve it.

Thank you

On January 1, 2012, Aspen Company acquired 80 percent of Birch Company's outstanding voting stock for $386,000. Birch reported a $347,500 book value and the fair value of the noncontrolling interest was $96,500 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $160,000 when Cedar had a $173,000 book value and the 20 percent noncontrolling interest was valued at $40,000. In each acquisition, the subsidiary's 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. Sales: Aspen Company Birch Company Cedar Company Expenses: Aspen Company Birch Company Cedar Company Dividends declared: Aspen Company Birch Company Cedar Company 2012 2013 2014 $ 462,500 227,250 Not available $ 625,000 390,750 212,600 $ 900,000 594,400 222,200 $ 375,000 164,000 Not available $ 530,000 309,000 194,000 $ 547,500 505,000 183,000 $ 18,000 8,000 Not available $ 30,000 20,000 4,000 $ 40,000 20,000 12,000 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 interests' 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 12/31/12 12/31/13 12/31/14 Amount $18,400 21,300 33,400 What is the realized income of Birch in 2013 and 2014, respectively? 2013 Realized income Check my work 2014