Selected account balances from the two companies’ individual records were as follows: Phoenix Sedona 2018 Revenues $498,000 $285,000 2018 Expenses 350,000 195,000 2018 Income from Sedona 55,000...

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

                                                 Phoenix          Sedona

2018 Revenues                       $498,000         $285,000

2018 Expenses                        350,000           195,000

2018 Income from Sedona     55,000

Retained earnings 12/31/18    250,000           175,000

What is consolidated net income for Phoenix and Sedona for 2018?

1. $148,000


2. $203,000


3. $228,000


4. $238,000