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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

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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. New Tune 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): Fair Values Receivables Trademarks . Record music catalog In-process research and development Notes payable Book Values $ 65,000 95,000 60,000 -0- (50,000) $ 63,000 225,000 180,000 200,000 (45,000) Precombination book values for the two companies are as follows: Cash Receivables Trademarks Record music catalog Equipment (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 (continued) 09/30/19 04:40 PM Final PDF to pri Flued) ccounts payable otes payable ommon stock dditional pald-in capital etained earnings otals NewTune $ (110,000) (370,000) (400,000) (30,000) (860,000) $(1,770,000) On-the-Go $ (34.000) (50,000) (50,000) (30,000) (190,000) $(354,000) Assume that this combination is a statutory merger so that On-the-Go's accounts will be trans- ferred to the records of New Tune. On-the-Go will be dissolved and will no longer exist as a legal entity. Prepare a postcombination balance sheet for New Tune as of the acquisition date. Assume that no dissolution takes place in connection with this combination. Rather, both com- panies retain their separate legal identities. Prepare a worksheet to consolidate the two compa- nies as of the combination date. How do the balance sheet accounts compare across parts (a) and (b)

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