On January 1, 2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $658,000 cash. At January 1, 2019, Sedonas net assets had a total carrying amount of $460,600. Equipment (eight-year remaining life) was undervalued on Sedonas 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 $26,500 dividend. Sedona recorded net income of $75,000 in 2019 and $94,300 in 2020. Selected account balances from the two companies individual records were

a. $291,250

b. $326,250

c. $316,250

d. $220,000

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