Condensed balance sheets for phillips company and solina company on january 1, 2013, are as follows: phillips solinacurrent assets$180,000$85,000plant and equipment (net)450,000140,000total assets$630,000$225,000total liabilities$95,000$35,000common stock, $10 par value350,000160,000other contributed capital125,00053,000retained earnings (deficit)60,000(23,000)total liabilities and equities$630,000$225,000on january 1, 2013, the stockholders of phillips and solina agreed to a consolidation. because fasbrequires that one party be recognized as the acquirer and the other as the acquiree, it was agreed that phillips wasacquiring solina. phillips agreed to issue 20,000 shares of its $10 par stock to acquire all the net assets of solinaat a time when the fair value of phillips’ common stock was $15 per share. on the date of consolidation, the fair values of solina’s current assets and liabilities were equal to their bookvalues. the fair value of plant and equipment was, however, $150,000. phillips will incur $20,000 of direct acqui-sition costs and $6,000 in stock issue costs. required: prepare the journal entries on the books of phillips to record the acquisition of solina company’s net assets.

What is the state tax rate for a resident of arizona whose annual taxable income is $18,000?

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?