On January 1, 2015, NewTune Company exchanges 15,000 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each of NewTunes 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-Gos fair value. NewTune also paid $25,000 in stock registration and issuance costs in connection with the merger.

Several of On-the-Gos accounts fair values differ from their book values on this date:

	Book Values	Fair Values
Receivables?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$ 65,000	$ 63,000
Trademarks?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	95,000	225,000
Record music catalog??. . . . . . . . . . . . . . . . . . . . . . . . .	60,000	180,000
In-process research and development . . . . . . . . . . . . .	0	200,000
Notes payable? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(50,000)	(45,000)

Precombination January 1, 2015, book values for the two companies are as follows:

	NewTune	On-the-Go
Cash? . . . . . . . . . . . . . . . . . . . . . . . .	$ 60,000	$ 29,000
Receivables?? . . . . . . . . . . . . . . . . . .	150,000	65,000
Trademarks.? . . . . . . . . . . . . . . . . . .	400,000	95,000
Record music catalog . . . . . . . . . . .	840,000	60,000
Equipment (net). . . . . . . . . . . . . . . .	320,000	105,000
Totals . . . . . . . . . . . . . . . . . . . . . . . .	$ 1,770,000	$ 354,000
Accounts payable. . . . . . . . . . . . . . .	$ (110,000)	$ (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)

Prepare balance sheet for a statutory merger using the acquisition method.