On January Phoenix Co acquired percent of the outstanding voting shares of Sedona Inc. for $ cash. At January Sedonas net assets had a total carrying amount of $ Equipment eightyear remaining life was undervalued on Sedonas financial records by $ Any remaining excess fair over book value was attributed to a customer list developed by Sedona fouryear remaining life but not recorded on its books. Phoenix applies the equity method to account for its investment in Sedona. Each year since the acquisition, Sedona has declared a $ dividend. Sedona recorded net income of $ in and $ in
Selected account balances from the two companies individual records were as follows:
Phoenix Sedona
Revenues $ $
Expenses
Income from Sedona
Retained earnings
On its December consolidated balance sheet, what amount should Phoenix report for Sedonas customer list?
