Problem 7-14 (LO 7-1) On January 1, 2012, Aspen Company acquired 80 percent of Birch Company's outstanding 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. Also, on January 1, 2013, 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 life These companies report the following financial information. Investment income figures are not included 2014 Sales Aspen Company Birch Company Cedar Company $472,500 $ 645,000 $ 850,000 262,250 337,500 607,300 Not available 233,800 251,600 Expenses Aspen Company Birch Company Cedar Company Dividends declared Aspen Company Birch Company Cedar Company $397,500 $ 642,500 $ 690,000 205,000 267,000 520,000 Not available 219,000 219,000 15,000 Not available $ 20,000 $ 35,000 $ 45,000 15,000 8,000 15,000 3,000 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, 2013 balance in Aspen's Investment in Birch Company account? estment in Birch b. What is the consolidated net income for this business combination for 2014? nsolidated net income