On January $1,2022,$ 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 $$99,000$ on that date. Then, on January $1,2023,$ Birch acquired $80$ percent of Cedar Company for $$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.

Items $202220232024$

Sales:

Aspen Company $ $560,000$ $ $790,000$ $ $847,500$

Birch Company $219,750299,250582,000$

Cedar Company Not available $188,500290,800$

Expenses:

Aspen Company $ $525,000$ $ $470,000$ $ $657,500$

Birch Company $162,000239,000502,500$

Cedar Company Not available $177,000241,000$

Dividends declared:

Aspen Company $ $15,000$ $ $35,000$ $ $45,000$

Birch Company $15,00018,00018,000$

Cedar Company Not available $3,0008,000$

Assume that each of the following questions is independent:

Required:

If all companies use the equity method for internal reporting purposes, what is the December $31,2023,$ balance in Aspen's Investment in Birch Company account?

What is the consolidated net income for this business combination for $2024?$

What is the net income attributable to the noncontrolling interest in $2024?$

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

$12/31/22$ $ $19,600$

$12/31/2319,400$

$12/31/2429,400$

What is the accrual$-$based net income of Birch in $2023$ and $2024,$ respectively?a$.$ If all companies use the equity method for internal reporting purposes, what is the December $31,2023,$ balance in Aspen's

Investment in Birch Company account?

b$.$ What is the consolidated net income for this business combination for $2024?$

c$.$ What is the net income attributable to the noncontrolling interest in $2024?$

Assume that Birch made intra$-$entity inventory transfers to Aspen that have resulted in the following intra$-$entity gross profits

of $$19,600,19,400,$ and $29,400$ at the end of $2022,2023$ and $2024$ respectively. What is the accrual$-$based net income of

Birch in $2023$ and $2024,$ respectively?