On January 1, 2012, Aspen Company acquired 80 percent of Birch Companys outstanding voting stock for $332,000. Birch reported a $370,000 book value and the fair value of the noncontrolling interest was $83,000 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $184,000 when Cedar had a $197,000 book value and the 20 percent noncontrolling interest was valued at $46,000. 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 $ 585,000 $ 585,000 $ 885,000 Birch Company 246,250 315,500 454,500 Cedar Company Not available 221,200 238,800 Expenses: Aspen Company $ 530,000 $ 420,000 $ 642,500 Birch Company 189,000 247,000 375,000 Cedar Company Not available 202,000 204,000 Dividends declared: Aspen Company $ 15,000 $ 30,000 $ 40,000 Birch Company 8,000 15,000 15,000 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? b. What is the consolidated net income for this business combination for 2014?