1. On January 1, 2013, NewTune Company exchanges 15,000 shares of its common stock for all of the net assets of On-the-Go, Inc. Each of the New Tune's shares has a $4 par value and a $50 fair value. New Tune also paid $25,000 as direct out-of-pocket costs. Several of On-the-Go's accounts have fair values that differ from their book values on this date: Receivables Trademarks Record music catalog In-process research and development Notes payable Book Values $ 65,000 95,000 60,000 -0- 50,000 Fair Values $ 63,000 225,000 180,000 200,000 45,000 Precombination January 1, 2013, book values for the two companies are as follows: Cash Receivables Trademarks Record music catalog Equpiment (net) Totals New Tune $ 60,000 150,000 400,000 840,000 320,000 $ 1,770,000 On-the-Go $ 29,000 65,000 95,000 60,000 105,000 $ 354,000 Accounts Payable $ 110,000 S 34,000 Notes Payable 370,000 50,000 Common stock 400,000 50,000 Additional paid-in capital 30,000 30,000 Retained earnings 860,000 190,000 Totals $ 1,770,000 $ 354,000 Assume that this combination is a statutory merger so that On-the-Go's accounts will be transferred to the records of NewTune. On-the-Go will be dissolved and will no longer exist as a legal entity. Using the acquisition method, prepare the journal entry to record the purchase and a postcombination balance sheet for New Tune as of the acquisition date