On January 1, 2013, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $846,600 cash. At January 1, 2013, Sedonas net assets had a total carrying amount of $545,000. Equipment (eight-year remaining life) was undervalued on Sedonas financial records by $150,400. 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 $50,000 dividend. Sedona recorded net income of $154,000 in 2013 and $182,250 in 2014.

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

	Phoenix	Sedona
2015 Revenues	$579,000	$379,000
2015 Expenses	370,000	237,000
2015 Income from Sedona	85,400
Retained earnings 12/31/15	309,000	323,250

What is consolidated net income for Phoenix and Sedona for 2015?

$329,400.

$319,400.

$294,400.

$209,000.