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.

Items

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:

Required:

a If all companies use the equity method for internal reporting purposes, what is the December balance in Aspen\'s Investment in Birch Company account?

b What is the consolidated net income for this business combination for

c What is the net income attributable to the noncontrolling interest in

d 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.