On January 1, 2016, Aspen Company acquired 80 percent of Birch Company's voting stock for $500,000. Birch reported a $490,000 book value and the fair value of the noncontrolling interest was $125,000 on that date. Then, on January 1, 2017, Birch acquired 80 percent of Cedar Company for $224,000 when Cedar had a $253,000 book value and the 20 percent noncontrolling interest was valued at $56,000. In each acquisition, the subsidiary's excess acquisition-date fair over book value was assigned to a trade name w a 30-year remaining life. These companies report the following financial information. Investment income figures are not included. 2016 2017 2018 $ 637,500 $ 650,000 $ 732,500 269,500 356,750 588,300 Not available 193,300 295, 200 Sales: Aspen Company Birch Company Cedar Company Expenses: Aspen Company Birch Company Cedar Company Dividends declared: Aspen Company Birch Company Cedar Company $ 402,500 $ 645,000 $ 577,500 215,000 286,000 510,000 Not available 182,000 260,000 $ 20,000 $ 5,000 Not available 35,000 $ 20,000 3,000 45,000 20,000 8,000 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, 2017, balance in Aspen's Investment in Birch Company account? b. What is the consolidated net income for this business combination for 2018? c. What is the net income attributable to the noncontrolling interest in 2018? d. 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 12/31/16 12/31/17 12/31/18 Amount $13,000 23,300 30,200 What is the accrual-based net income of Birch in 2017 and 2018, respectively