On January 1, 2012, Aspen Company acquired 80 percent of Birch Companys outstanding voting stock for $386,000. Birch reported a $347,500 book value and the fair value of the noncontrolling interest was $96,500 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $160,000 when Cedar had a $173,000 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 Company		$ 462,500	$	625,000	$	900,000
Birch Company		227,250		390,750		594,400
Cedar Company		Not available		212,600		222,200
Expenses:
Aspen Company		$ 375,000	$	530,000	$	547,500
Birch Company		164,000		309,000		505,000
Cedar Company		Not available		194,000		183,000
Dividends declared:
Aspen Company		$ 18,000	$	30,000	$	40,000
Birch Company		8,000		20,000		20,000
Cedar Company		Not available		4,000		12,000

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?

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?

Noncontrolling interests share of the consolidated net income__________

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	$18,400
12/31/13	21,300
12/31/14	33,400

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

Realized income 2013 2014

_______ ________