On January 1, 2012, Aspen Company acquired 80 percent of Birch Companys outstanding voting stock for $504,000. Birch reported a $510,000 book value and the fair value of the noncontrolling interest was $126,000 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $160,000 when Cedar had a $164,000 book value and the 20 percent noncontrolling interest was valued at $40,000. 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	515000	595000	740000
birch	285000	398750	631000
cedar	n/a	249800	258800
expenses:
aspen	397500	442500	530000
birch	237000	315000	557500
cedar	n/a	233000	216000
dividends declared:
aspen	20000	45000	55000
birch	10000	15000	15000
cedar	n/a	2000.	6000

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?

investment in birch	?????

b.

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

consolidated net income

???????

c.

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

NCI share of conolidated net income

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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:

the net income attributable to the noncontrolling interest in 2014?

date	amount
12/31/12	11100
12/31/13	20700
12/31/14	28400

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

2013 2014

Realized income ??????? ???????