The executives of XYZ Company, headquartered in PA, are looking to acquire a company to expand their product line. Please review the facts below and recommend which transaction, Bulldog or Sunshine, you believe would be the best for XYZ company and provide reasons for your recommendation from a tax and business perspective (Please utilize all you have learned this semester): Acquisition Bulldog: $1,000,000 in Cash: Projected Return on Investment = 9%: Increase in Customer Base = 2,000 Asset Acquisition of Customer List Only: Customers in state of California only: XYZ would need to retain office and 5 employees in California California Sales Tax Rate = 9%, California Corporate Income Tax Rate = 9.75%; California Employee Withholding Rates = 5% Acquisition Sunshine: $1,500,000 in Cash: Projected Return on Investment = 11%: Increase in Customer Base = 2,800 Stock Acquisition of Company - will be a subsidiary of XYZ Co: Customers in state of Florida only and includes 2 intangible assets worth approximately $200,000: XYZ would not need to retain Sunshine's office and employees in Florida as they could integrate operations with the employees of XYZ. Florida Sales Tax Rate = 6%, Florida Corporate Income Tax Rate = 4.75%; Florida Employee Withholding Rates = 0% The executives of XYZ Company, headquartered in PA, are looking to acquire a company to expand their product line. Please review the facts below and recommend which transaction, Bulldog or Sunshine, you believe would be the best for XYZ company and provide reasons for your recommendation from a tax and business perspective (Please utilize all you have learned this semester): Acquisition Bulldog: $1,000,000 in Cash: Projected Return on Investment = 9%: Increase in Customer Base = 2,000 Asset Acquisition of Customer List Only: Customers in state of California only: XYZ would need to retain office and 5 employees in California California Sales Tax Rate = 9%, California Corporate Income Tax Rate = 9.75%; California Employee Withholding Rates = 5% Acquisition Sunshine: $1,500,000 in Cash: Projected Return on Investment = 11%: Increase in Customer Base = 2,800 Stock Acquisition of Company - will be a subsidiary of XYZ Co: Customers in state of Florida only and includes 2 intangible assets worth approximately $200,000: XYZ would not need to retain Sunshine's office and employees in Florida as they could integrate operations with the employees of XYZ. Florida Sales Tax Rate = 6%, Florida Corporate Income Tax Rate = 4.75%; Florida Employee Withholding Rates = 0%