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On January 1, 2015, NewTune Company exchanges 17,953 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each of NewTune's
On January 1, 2015, NewTune Company exchanges 17,953 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 $30,000 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: Fair Book Values Receivables Trademarks Record music catalog In-process research and development Notes payable Values $ 39,000 34,550 299,000 262,500 210,000 105,500 68,250 (50,750) (44,900) Precombination January 1, 2015, book values for the two companies are as follows NewTune On-the-Go Cash Receivables Trademarks Record music catalog Equipment (net) $ 83,500$ 38,250 39,000 426,000 105,500 68,250 393,000 123,000 74,500 916,000 Totals $1,893,000 $374,000 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings $ (112,000) (52,750) (443,000) (50,750) (400,000) (50,000) (30,000) (30,000) (908,000) (190,500) Totals $ (1,893,000) $(374,000)
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