B. On January 1, 2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $626,000 cash. At January 1, 2019, Sedonas net assets had a total carrying amount of $438,200. Equipment (eight-year remaining life) was undervalued on Sedonas financial records by $86,000. 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 $31,000 dividend. Sedona recorded net income of $73,000 in 2019 and $92,200 in 2020.

Selected account balances from the two companies individual records were as follows:

	Phoenix			Sedona
2021 Revenues	$	650,000		$	304,400
2021 Expenses		436,000			202,000
2021 Income from Sedona		66,200
Retained earnings 12/31/21		346,200			204,300

On its December 31, 2021, consolidated balance sheet, what amount should Phoenix report for Sedonas customer list?

Multiple Choice

• $20,360

• $10,180

• $25,450

• $50,900