On January 1, 2012, Aspen Company acquired 80 percent of Birch Company's outstanding voting stock for $438,000. Birch reported a $457,500 book value and the fair value of the non-controlling interest was $109,500 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $200,000 when Cedar had a $205,000 book value and the 20 percent non-controlling interest was valued at $50,000. 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.

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?
b. What is the consolidated net income for this business combination for 2014?
c. What is the net income attributable to the non-controlling interest in 2014?
d. Assume that Birch made intra-entity inventory transfers to Aspen that have resulted in the following unrealized gross profits at the end of each year:
Date________________________ Amount
12/31/12.................................$16,600
12/31/13..................................23,600
12/31/14..................................33,200
What is the realized income of Birch in 2013 and 2014, respectively?

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2012 2013 2014 Sales: Aspen 747,500 $ 632,500 S 822,500 Company 327,250 Birch 261,250 416,900 Company Not Cedar 185,900 292,600 Company available Expenses: 750,000 Aspen 522,500 S 542,500 Company Birch 261,000 200,000 335,000 Company 250,000 Cedar Not 171,000 Company available Dividends declared: Aspen $ 15,000 S 45,000 55,000 Company Birch 8,000 15,000 15,000 Company Cedar Company Not 2,000 6,000 available