On January 1, 2015, NewTune Company exchanges 16,167 shares of its common stock for all of the outstanding shares of On-the-Go, Inc.

Each of NewTune's shares has a $10 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.

Neptune also paid $31,400 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:

	Book Values	Fair Values
Receivables	$50,750	$44,200
Trademarks	104,250	250,500
Record music catalog	75,000	201,750
In-process research and development	0	225,000
Notes payable	68,250	62,750

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

	Neptune	On-the-Go
Cash	$63,000	$38,500
Receivables	126,000	50,750
Trademarks	459,000	104,250
Record music catalog	841,000	75,000
Equipment (net)	389,000	133,000
Totals	$1,878,000	$401,500
Accounts payable	$129,000	$52,750
Notes payable	370,000	68,250
Common stock	400,000	50,000
Additional paid-in capital	30,000	30,000
Retained earnings	949,000	200,500
Totals	$1,878,000	$401,500

(a) Assuming that NewTune uses the purchase method to account for the acquisition of On-The-Go Company, Prepare the journal entries necessary to record the Investment in On-The-Go on the date of acquisition.

- Record the acquisition of the On-The-Go Company stock.

- Record the payment of the stock issuance costs.

- Record the legal fees related to the acquisition.

(b) Assuming that the Board of Directors of NewTune votes to dissolve On-The-Go Company on February 1, 2015, Prepare the journal entries necessary to this dissolution.

- Record the dissolution of On-The-Go Company.