On January,1, 2012, Aspen Company acquied 80 percent of Birch Company's outstanding voting stock for $352,000. Birch reported a $380,000 book value and fair value of the noncontrolling interest was $88,000 on that date. Also, on January 1,2013, Birch acquired 80 percent of Cedar Company for $128,000 when Cedar had a $106,000 book value and a 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 life.

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

2012 2013 2014

Sales:

Aspen Company $512,500 $ 557,500 $ 827,500

Birch Company 239,000 360,750 523,200

Cedar Company Not available 235,200 310,200

Expenses:

Aspen Company $ 400,000 $ 437,500 $ 522,500

Birch Company 177,000 286,000 435,000

Cedar Company Not available 216,000 267,000

Dividends declared:

Aspen Company $ 18,000 $ 45,000 $ 55,000

Birch Company 8,000 20,000 20,000

Cedar company Not available 2,000 6,000

Assume that each of the following questions is independent:

a. If all companies use the equity methtod for internal reporting purposes, what is the December 31, 2013, balance in Aspen's Investment in Birch company account?

Investment in Birch

b. What is the consolidated net income for this business combination for 2014?

Consolidated net income

c. What is the net income attributable to the noncontrolling interest in 2014?

Noncontrolling interest's share of the consolidated net income

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

Date Amount

12/31/12 $13,800

12/31/13 19,100

12/31/14 29,100

What is the realized income of Birch in 2014 and 2014, respectively?