On January 1, 2012, Aspen Company acquired 80 percent of Birch Companys outstanding voting stock for $490,000. Birch reported a $477,500 book value and the fair value of the noncontrolling interest was $122,500 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $192,000 when Cedar had a $141,000 book value and the 20 percent noncontrolling interest was valued at $48,000. 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		$ 602,500	$	682,500	$	787,500
Birch Company		297,500		306,500		454,400
Cedar Company		Not available		254,600		303,400
Expenses:
Aspen Company		$ 417,500	$	497,500	$	670,000
Birch Company		240,000		234,000		372,500
Cedar Company		Not available		241,000		270,000
Dividends declared:
Aspen Company		$ 15,000	$	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?

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	$12,500
12/31/13	19,600
12/31/14	26,900

D

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