What is the accrual-based net income of Birch in 2017 and 2018, respectively? x Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A to C Req D 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? Show less A: a Investment in Birch 494.480 (x Consolidated net income 292,100 C. Noncontrolling interests' share of the consolidated net income 27,560On January 1, 2010, Aspen Company acquired 80 percent of Birch Company's voting stock for $402,000. Elirch reported a $39?,500 book value and the fair value of the noncontrolling interest was $100,500 on that date. Then, on January 1, 201?, Birch acquired 80 percent of lCedar lCompany for $156,000 when Cedar had a $123,000 book value and the 20 percent noncontrolling interest was valued at $39,000. In each acquisition, the subsidiary's excess acquisitiondate fair over book value was assigned to a trade name with a 30year remaining life. These companies report the following financial information. Investment income figures are not included. 2016 201? 2018 Sales: Asp-en Company 5 552,500 5 605,000 5 855,000 Birch Company 292,000 322,000 554,100 Cedar Company Not available 204,000 215,400 Expenses: Asp-en Company :0 452,500 5 502,500 5 622,500 Birch Company 228,000 251,000 465,000 Cedar Company Not: available 186,000 184,000 Dividends declared: Asp-en Company :0 18,000 $ 40,000 $ 50,000 Birch Company 10,000 18,000 18,000 Cedar Company Not: available 2,000 10,000 Assume that each ofthe following questions is independent: a. If all companies use the equity method for internal reporting purposes, what is the December 31, 201?, balance in Aspen's Investment in Birch Company account? In. What is the consolidated net income for this business combination for 20l8? 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 prots in inventory at the end of each year: Date Amount 12/31/16 $13, 200 12/31/17 25, 500 12/31/18 30, 500 What is the accrual-based net income of Birch in 2017 and 2018, respectively? * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A to C Reg 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 12/31/16 $13, 200 12/31/17 25, 500 12/31/18 30,500 What is the accrual-based net income of Birch in 2017 and 2018, respectively? Show less A 2017 2018 Realized income 70,800 * $ 103,800
