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phi in both sides of formula 14-1

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I am confused with the formula (14-1) "Design axial load strength" which sowns a factor "phi" at the two sides of the formula.     In the 2001 California Building Code.
My recollection in algebra says that a value goes to the other side of the formula with the oppossite sign. If I follow the rule, "phi" multiplying goes dividing, means phi/phi=1.
Why in such Chapter 19, DIVII - 1914.5.1 even it gives a value of 0.70 to phi?.
 
I will appreciate your comments, specially because I am an architect.
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