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On January 1 , 2 0 1 9 , Aspen Company acquired 8 0 percent of Birch Company's voting stock for $ 5 0 4
On January Aspen Company acquired percent of Birch Company's voting stock for $ Birch reported a $ book value, and the fair value of the noncontrolling interest was $ on that date. Then, on January Birch acquired percent of Cedar Company for $ when Cedar had a $ book value and the percent noncontrolling interest was valued at $ In each acquisition, the subsidiary's excess acquisitiondate fair over book value was assigned to a trade name with a year remaining life.
These companies report the following financial information. Investment income figures are not included.
Sales:
Aspen Company $ $ $
Birch Company
Cedar Company Not available
Expenses:
Aspen Company $ $ $
Birch Company
Cedar Company Not available
Dividends declared:
Aspen Company $ $ $
Birch Company
Cedar Company Not available
Assume that each of the following questions is independent:
If all companies use the equity method for internal reporting purposes, what is the December balance in Aspen's Investment in Birch Company account?
What is the consolidated net income for this business combination for
What is the net income attributable to the noncontrolling interest in
Assume that Birch made intraentity inventory transfers to Aspen that have resulted in the following intraentity gross profits in inventory at the end of each year:
Date Amount
$
What is the accrualbased net income of Birch in and respectively?
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