On January 1, 2016, Aspen Company acquired 80 percent of Birch Company's voting stock for $480,000. Birch reported a $495,000 book value and the fair value of the noncontrolling interest was $120,000 on that date. Then, on January 1, 2017, Birch acquired 80 percent of Cedar Company for $168,000 when Cedar had a $165,000 book value and the 20 percent noncontrolling interest was valued at $42,000. In each acquisition, the subsidiary's excess acquisition-date fair over book value was assigned to a trade name with a 30-year remaining life.

These companies report the following financial information. Investment income figures are not included.

	2016		2017		2018
Sales:
Aspen Company	$	472,500	$	645,000	$	850,000
Birch Company		262,250		337,500		607,300
Cedar Company	Not available			233,800		251,600
Expenses:
Aspen Company	$	397,500	$	642,500	$	690,000
Birch Company		205,000		267,000		520,000
Cedar Company	Not available			219,000		219,000
Dividends declared:
Aspen Company	$	20,000	$	35,000	$	45,000
Birch Company		15,000		15,000		15,000
Cedar Company	Not available			3,000		8,000

Assume that Birch made intra-entity inventory transfers to Aspen that have resulted in the following intra-entity gross profits in inventory at the end of each year:

Date	Amount
12/31/16	$15,500
12/31/17	16,700
12/31/18	33,600

What is the accrual-based net income of Birch in 2017 and 2018, respectively?