On January 1, 2022, Aspen Company acquired 80 percent of Birch Company's voting stock for $452,000. Birch reported a $505,000 book value, and the fair value of the noncontrolling interest was $113,000 on that date. Then, on January 1, 2023, Birch acquired 80 percent of Cedar Company for $112,000 when Cedar had a $104,000 book value and the 20 percent noncontrolling interest was valued at $28,000. 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. Items Sales: Aspen Company Birch Company Cedar Company Expenses: Aspen Company 2022 $ 517,500 294,500 Not available 2023 2024 $ 715,000 368,000 247,100 $ 935,000 594,600 223,400 $ 557,500 510,000 181,000 $ 55,000 18,000 6,000 Birch Company Cedar Company Dividends declared: $ 477,500 241,000 Not available $ 495,000 305,000 236,000 Aspen Company Birch Company Cedar Company $ 18,000 10,000 Not available $ 45,000 18,000 2,000 Assume that each of the following questions is independent: Required: a. If all companies use the equity method for internal reporting purposes, what is the December 31, 2023, balance in Aspen's Investment in Birch Company account? b. What is the consolidated net income for this business combination for 2024? c. What is the net income attributable to the noncontrolling interest in 2024? 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 12/31/22 12/31/23 12/31/24 Amount $ 19,700 20,300 25,600 What is the accrual-based net income of Birch in 2023 and 2024, respectively? Req A to C Req D a. If all companies use the equity method for internal reporting purposes, what is the December 31, 2023, balance in Aspen's Investment in Birch Company account? b. What is the consolidated net income for this business combination for 2024? c. What is the net income attributable to the noncontrolling interest in 2024? a. Investment in Birch at December 31, 2023 b. Consolidated net income c. Noncontrolling interests' share of the consolidated net income Req A to C Req D Amount Show less▲ Assume that Birch made intra-entity inventory transfers to Aspen that have resulted in the following intra-entity gross profits of $19,700, 20,300, and 25,600 at the end of 2022, 2023 and 2024 respectively. What is the accrual-based net income of Birch in 2023 and 2024, respectively? Accrual-based net income 2023 2024