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On January 1,2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona...

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Accounting

On January 1,2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $646,000 cash. At January 1,2019, Sedonas net assets had a total carrying amount of $452,200. Equipment (eight-year remaining life) was undervalued on Sedonas financial records by $92,000. Any remaining excess fair over book value was attributed to a customer list developed by Sedona (four-year 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 $28,000 dividend. Sedona recorded net income of $87,000 in 2019 and $106,200 in 2020.
Selected account balances from the two companies individual records were as follows:
Phoenix Sedona
2021 Revenues $ 591,000 $ 324,400
2021 Expenses 371,000220,000
2021 Income from Sedona 67,450
Retained earnings 12/31/21337,450218,600
On its December 31,2021, consolidated balance sheet, what amount should Phoenix report for Sedonas customer list?
Multiple Choice
$25,450
$50,900
$10,180
$20,360

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