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On January 1 , 2 0 1 9 , Phoenix Co . acquired 1 0 0 percent of the outstanding voting shares of Sedona Inc.

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
What is Phoenixs consolidated retained earnings balance at December 31,2021?
Multiple Choice
$337,450
$312,450
$220,000
$322,450

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