On January 1, 2015, NewTune Company exchanges 18,688 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 $35,250 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 Fair Values Values Receivables 51,750 49,150 Trademarks 96,000 267,750 84,500 Record music catalog 240,500 In-process research and development 265,500 Notes payable (72,000) (63,750) Precombination January 1, 2015, book values for the two companies are as follows: New Tune On-the-Go 70,000 41,000 Cash Receivables 140,000 51,750 Trademarks 418,000 96,000 Record music catalog 931,000 84,500 Equipment (net) 333,000 138,000 Totals 1,892,000 411,250 (113,000) (38,250) Accounts payable Notes payable (467,000) (72,000) Common stock (400,000) (50,000) Additional paid-in capital (30,000) (30,000) Retained earnings (882,000) (221,000) Totals $(1,892,000) $(411,250)