On January 1, 2012, Aspen Company acquired 80 percent of Birch Companys outstanding voting stock for $288,000. Birch reported a $300,000 book value and the fair value of the noncontrolling interest was $72,000 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $104,000 when Cedar had a $100,000 book value and the 20 percent noncontrolling interest was valued at $26,000. In each acquisition, the subsidiarys 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.

	2012		2013		2014
Sales:
Aspen Company		$ 415,000	$	545,000	$	688,000
Birch Company		200,000		280,000		400,000
Cedar Company		Not available		160,000		210,000
Expenses:
Aspen Company		$ 310,000	$	420,000	$	510,000
Birch Company		160,000		220,000		335,000
Cedar Company		Not available		150,000		180,000
Dividends declared:
Aspen Company		$ 20,000	$	40,000	$	50,000
Birch Company		10,000		20,000		20,000
Cedar Company		Not available		2,000		10,000

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?

b.	What is the consolidated net income for this business combination for 2014?

c.	What is the net income attributable to the noncontrolling interest in 2014?

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	Amount
12/31/12	$10,000
12/31/13	16,000
12/31/14	25,000

What is the realized income of Birch in 2013 and 2014, respectively?