Business, 14.02.2020 05:55 khlo30

"On January 1,2011, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $600,000 cash. At January 1,2011, Sedona’s net assets had a total carrying amount of $420,000. Equipment (eight-year remaining life) wasundervalued on Sedona’s nancial records by $80,000. Any remaining excess fair over book value was attributed to acustomer 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 paid a $20,000 dividend. Sedona recorded income of $70,000 in 2011 and $80,000 in 2012.Selected account balances from the two companies’ individual records were as follows: Phoenix Sedona2013 Revenues $498,000 $498,000 $285,0002013 Expenses 350,000 195,0002013Income from Sedona 55,000Retained earnings 250,000 175,000What is consolidated net income for Phoenix and Sedona for 2013?a. $148,000b. $203,000c. $228,000d. $238,000"

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"On January 1,2011, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc....