1. What is consolidated net income for Phoenix and Sedona for 2018?

2. What is Phoenix's consolidated retained earnings balance at December 31, 2018?

3. On its December 31, 2018, consolidated balance sheet, what amount should Phoenix report for Sedona's customer list?

Required Information On January 1, 2016, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $752,000 cash. At January 1, 2016, Sedona's net assets had a total carrying amount of $526,400. Equipment (eight-year remaining life) was undervalued on Sedona's financial records by $104,000. 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 $16,000 dividend. Sedona recorded net income of $106,000 in 2016 and $118,700 in 2017 Selected account balances from the two companies' individual records were as follows: Sedona Phoenix 605,000 375,200 417,000 268,000 2018 Revenues 2018 Expenses 2018 Income from Sedona Retained earnings 12/31/18 78,600 321,600 236,900