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Multiple choice Required information On January 1, 2016, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $626,000 cash. At

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Required information On January 1, 2016, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $626,000 cash. At January 1, 2016, Sedona's net assets had a total carrying amount of $438,200. Equipment (eight-year remaining life) was undervalued on Sedona's 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 2016 and $92.200 in 2017. Selected account balances from the two companies' individual records were as follows: Phoenix Sedona 2018 Revenues $ 650, 000 $ 304, 400 2018 Expenses 436, 000 202. 000 2018 Income from Sedona 66, 200 Retained earnings 12/31/10 346, 209 204, 300 What is consolidated net income for Phoenix and Sedona for 20187

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