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

[The following information applies to the questions displayed below.]

On January 1, 2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $684,000 cash. At January 1, 2019, Sedona’s net assets had a total carrying amount of $478,800. 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 $14,500 dividend. Sedona recorded net income of $98,000 in 2019 and $114,400 in 2020.

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

	Phoenix			Sedona
2021 Revenues	$	580,000		$	338,800
2021 Expenses		372,000			247,000
2021 Income from Sedona		51,250
Retained earnings 12/31/21		323,650			219,400

Problem 3-12 (Algo) (LO 3-3a)

On its December 31, 2021, consolidated balance sheet, what amount should Phoenix report for Sedona’s customer list?

Multiple Choice

• $59,600

• $23,840

• $11,920

• $29,800

Answer rating: 100% (QA)

ANS WER 59 600 WORK ING 86 000 equity in Sed ona 14 ... View the full answer