On January $1,2022,$ Aspen Company acquired $80$ percent of Birch Company's voting stock for $$428,000.$ Birch reported a $$445,000$ book value, and the fair value of the noncontrolling interest was $$107,000$ on that date. Then, on January $1,2023,$ Birch acquired $80$ percent of Cedar Company for $$176,000$ when Cedar had a $$193,000$ book value and the $20$ percent noncontrolling interest was valued at $$44,000.$ 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 $202220232024$

Sales:

Aspen Company $ $572,500$ $ $625,000$ $ $767,500$

Birch Company $255,750363,250582,600$

Cedar Company Not available $231,900267,000$

Expenses:

Aspen Company $ $390,000$ $ $607,500$ $ $722,500$

Birch Company $193,000289,000517,500$

Cedar Company Not available $217,000233,000$

Dividends declared:

Aspen Company $ $20,000$ $ $35,000$ $ $45,000$

Birch Company $5,00018,00018,000$

Cedar Company Not available $3,0008,000$

Assume that each of the following questions is independent:

Required:

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?

What is the consolidated net income for this business combination for $2024?$

What is the net income attributable to the noncontrolling interest in $2024?$

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

$12/31/22$ $ $19,800$

$12/31/2316,100$

$12/31/2432,300$

What is the accrual$-$based net income of Birch in $2023$ and $2024,$ respectively?