34. On January 1, NewTune Company exchanges 15,000 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each of NewTune's shares has a $4 par value and a $50 fair value. The fair value of the stock exchanged in the acquisition was considered equal to On-the-Go's fair value. NewTune also paid $25,000 in stock registration and issuance costs in connection with the merger. Several of On-the-Go's accounts' fair values differ from their book values on this date (credit balances in parentheses): Receivables Trademarks Recond music catalog In-process research and development Notes payable Precombination book values for the two companies are as follows: Cash Receivables Trademarks Record music catalog Equipment (net) Totals Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Totals Book Values $ 65,000 Fair Values $63,000 95,000 225,000 60,000 180,000 -0- 200,000 (50,000) (45,000) New Tune $ 60,000 150,000 400,000 840,000 320,000 $ 1.770.000 $ (110,000) (370,000) (400,000) (30,000) On-the-Go $29,000 65.000 95.000 60,000 105,000 $354,000 $ (34,000) (50,000) (50,000) (30,000) 800,000) (190.000) $1.770.000) $354,000) 1. Prepare NewTune's journal entries to record the acquisition of On-the-Go, assuming that On-the-Go's will be dissolved and no longer exist as a legal entity. 2. Prepare NewTune's journal entries to record the acquisition of On-the-Go, assuming that no dissolution takes place and both companies retain their separate legal identities