Consolidation L06 Condensed balance sheets for Phillips Company and Solina Company on January 1, 2010, are as follows: Solina Current assets Plant and equipment (net) Total assets Total liabilities Common stock, $10 par value Other contributed capital Retained earnings (deficit) Total liabilities and equities Phillips $180,000 450,000 $630,000 $ 95,000 350,000 125,000 60,000 $630,000 $ 85,000 140,000 $225,000 $ 35,000 160,000 53,000 (23,000) $225,000 On January 1, 2010, the stockholders of Phillips and Solina agreed to a consolidation. Because FASB requires that one party be recognized as the acquirer and the other as the ac- quiree, it was agreed that Phillips was acquiring Solina. Phillips agreed to issue 20,000 shares of its $10 par stock to acquire all the net assets of Solina at 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 book values. The fair value of plant and equipment was, however, $150,000. Phillips will incur $20,000 of direct acquisition costs and $6.000 in stock issue costs. Required: Prepare the journal entries on the books of Phillips to record the acquisition of Solina Com- pany's net assets