On January 1, 2019, Aspen Company acquired 80 percent of Birch Company's voting stock for $438,000. Birch reported a $45

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On January 1, 2019, Aspen Company acquired 80 percent of BirchCompany's voting stock for $438,000. Birch reported a $457,500 bookvalue, and the fair value of the noncontrolling interest was$109,500 on that date. Then, on January 1, 2020, Birch acquired 80percent of Cedar Company for $200,000 when Cedar had a $205,000book value and the 20 percent noncontrolling interest was valued at$50,000. In each acquisition, the subsidiary's excessacquisition-date fair over book value was assigned to a trade namewith a 30-year remaining life.
These companies report the following financial information.Investment income figures are not included.
Assume that each of the following questions is independent:
If all companies use the equity method for internal reportingpurposes, what is the December 31, 2020, balance in Aspen'sInvestment in Birch Company account?
What is the consolidated net income for this businesscombination for 2021?
What is the net income attributable to the noncontrollinginterest in 2021?
Assume that Birch made intra-entity inventory transfers to Aspenthat have resulted in the following intra-entity gross profits ininventory at the end of each year
What is the accrual-based net income of Birch in 2020 and 2021,respectively?