On January 1, 2019, Aspen Company acquired 80 percent of Birch Company's voting stock for $352,000. Birch reported a $380,000 book value, and the fair value of the noncontrolling interest was $88,000 on that date. Then, on January 1, 2020, Birch acquired 80 percent of Cedar Company for $128,000 when Cedar had a $106,000 book value and the 20 percent noncontrolling interest was valued at $32,000. 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.

1. 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:

What is the accrual-based net income of Birch in 2020 and 2021, respectively?

2019 2020 2021 $ 512,500 $ 557,500 $ 827,500 239,000 360,750 523,200 Not available 235,200 310,200 Sales: Aspen Company Birch Company Cedar Company Expenses : Aspen Company Birch Company Cedar Company Dividends declared: Aspen Company Birch Company Cedar Company $ 400,000 $ 437,500 $ 522,500 177,000 286,000 435,000 Not available 216,000 267,000 $ 18,000 $ 8,000 Not available 45,000 $ 20,000 2,000 55,000 20,000 6,000 Date 12/31/19 12/31/20 12/31/21 Amount $13,800 19,100 29,100 2020 2021 Accrual-based net income