m On January 1, NewTune Company exchanges 19,633 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 $45,550 in stock registration and issuance costs in connection with the merger. 20 points Several of On-the-Go's accounts' fair values differ from their book values on this date: Receivables Trademarks Record music catalog In-process research and development Notes payable Book Values $ 62,500 105,500 75, 750 Fair Values $ 60,400 294, 500 270,000 243,000 (61, 700) (67,000) 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 NewTune $ 76,000 162,000 485,000 875,000 332, 000 $ 1,930, 000 $ (159,000) (451, 000) (400,000) (30,000) (890, 000) $(1,930, 000) On-the-Go $ 52, 750 62,500 105,500 75, 750 139,000 $ 435,500 $ (51,500) (67,000) (50,000) (30,000) (237,000) $ (105, 500) a. 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. Prepare a postcombination balance sheet for NewTune as of the acquisition date. b. Assume that no dissolution takes place in connection with this combination. Rather, both companies retain their separate legal identities. Prepare a worksheet to consolidate the two companies as of the combination date