On January 1, 2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona...

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On January 1, 2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $600,000 cash. At Ja What is consolidated net income for Phoenix and Sedona for 2021? Multiple Choice $228,000 $238,000 $148,000 $203,000

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Answer 1

Answer #1

Option D - $203,000

Explanation:

Consolidated net income for pheonix and sedona for 2021

Particulars	Amount in $
Pheonix Revenues	$498,000
Less: Pheonix Expenses	$350,000
Net Income before Sedona effect	$148,000
Add: 'Sedona effect' Equity income from sedona	$55,000
Consolidated Net Income	$203,000

Therefore, Answer is option D - $203,000

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Answer 2

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