On January 1, 2019, Aspen Company acquired 80 percent of Birch Company's voting stock for $372,000. Birch reported a $360,000 book value, and the fair value of the noncontrolling interest was $93,000 on that date. Then, on January 1, 2020, Birch acquired 80 percent of Cedar Company for $180,000 when Cedar had a $126,000 book value and the 20 percent noncontrolling interest was valued at $45,000. 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. Sales: 2019 2020 2021 Aspen Company Birch Company Cedar Company Expenses: Aspen Company Birch Company Cedar Company Dividends declared: Aspen Company Birch Company Cedar Company $ 517,500 $ 655,000 $ 910,000 272,000 344,250 171,900 575,400 288,600 Not available $425,000 $545,000 $ 747,500 231,000 266,000 495,000 Not available 161,000 249,000 $ 18,000 $ 5,000 35,000 $ 45,000 Not available 15,000 3,000 15,000 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, 2020, balance in Aspen's Investment in Birch Company account? b. What is the consolidated net income for this business combination for 2021? c. What is the net income attributable to the noncontrolling interest in 2021? 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 Amount 12/31/19 $14,300 23,600 12/31/20 12/31/21 32,000 What is the accrual-based net income of Birch in 2020 and 2021, respectively? Req A to C Req D a. If all companies use the equity method for internal reporting purposes, what is the December 31, 2020, balance in Aspen's Investment in Birch Company account? b. What is the consolidated net income for this business combination for 2021? c. What is the net income attributable to the noncontrolling interest in 2021? Amount a. Investment in Birch at December 31, 2020 b. Consolidated net income $ 275,700 c. Noncontrolling interests' share of the consolidated net income Req A to C Req D Show less 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: 12/31/19 12/31/20 12/31/21 Date What is the accrual-based net income of Birch in 2020 and 2021, respectively? 2020 2021 Accrual-based net income Amount $14,300 23,600 32,000 Show less A