! Required information (The following information applies to the questions displayed below.] On January 1,...
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! Required information (The following information applies to the questions displayed below.] On January 1, 2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $782,000 cash. At January 1, 2019, Sedonas net assets had a total carrying amount of $547,400. Equipment (eight-year remaining life) was undervalued on Sedona's financial records by $98,000. 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 $19,000 dividend. Sedona recorded net income of $105,000 in 2019 and $117,800 in 2020. Selected account balances from the two companies' individual records were as follows: Phoenix $ 608,000 427,000 51,200 294,000 Sedona $ 384,600 287,000 2021 Revenues 2021 Expenses 2021 Income from Sedona Retained earnings 12/31/21 222,700 On its December 31, 2021, consolidated balance sheet, what amount should Phoenix report for Sedona's customer list? Multiple Choice $13,660 $68,300 $34,150 $27,320
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