Use this information to answer the following questions 10-12 (Algo) (LO 3-3a)

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On January 1, 2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $730,000 cash. At January 1, 2019, Sedonas net assets had a total carrying amount of $511,000. Equipment (eight-year remaining life) was undervalued on Sedonas financial records by $122,000. 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 $10,000 dividend. Sedona recorded net income of $81,000 in 2019 and $92,500 in 2020.

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

	Phoenix			Sedona
2021 Revenues	$	601,000		$	329,400
2021 Expenses		380,000			229,000
2021 Income from Sedona		60,900
Retained earnings 12/31/21		337,100			202,300

What is Phoenixs consolidated retained earnings balance at December 31, 2021?

Multiple Choice

• $306,900

• $221,000

• $316,900

• $337,100