on january 1 2012 aspen company acquired 80 percent of birch company outstanding voting stock for $460,000. Birch reported as $470,000 book value and the fair value of the noncontrolling interest was $115,000 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $164,000 when CEDAR had a $124,000 book value and the 20 percent noncontrolling interest was valued at $41,000. In each acquisition, the subsidiary's excess acquisition date fair over book value was assigned to a trade name with a 30 year life.

Sales

Aspen Company $545,000 $630,000 $717,500

Birch Company 268,750 290,750 603,600

Cedar Company N/A 192,900 275,600

Expenses:

ASPEN Company 382,500 565,000 627,500

Birch Company 211,000 222,000 525,000

Cedar Company N/A 181,000 245,000

Dividends declared:

Aspen Company 20,000 45,000 55,000

Birch Company 10,000 20,000 20,000

Cedar Company N/A 2,000 6,000

Assume that end of the following questions is independent:

A. If all companies use the equity method for internal reporting purpose, what is the December 31, 2013, balance in Aspen's investment in Birch Company account?

B. What is 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 $11,500

12/31/13 16,400

12/31/14 32,900

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