On January 1, NewTune Company exchanges 15,000 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 $25,000 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 (credit balances in parentheses): Book Values Fair Values Receivables... Trademarks... Record music catalog.. In-process research and development. Notes payable..... $ 65,000 $63,000 95,000 225,000 60,000 180,000 -0- 200,000 (50,000) (45,000) Precombination book values for the two companies are as follows: Cash.. Receivables. Trademarks... Record music catalog. Equipment (net). Assets Totals... Accounts payable. Notes payable.. Common stock. Additional paid-in capital. Retained earnings... Liability and Equity Totals. NewTune On-the-Go . $ 60,000 $29,000 150,000 65,000 400,000 95,000 840,000 60,000 .320,000 105,000 $1,770,000 $354,000 $ (110,000) $ (34,000) (370,000) (50,000) (400,000) (50,000) ..(30,000) (860,000) (30,000) (190,000) . $ (1,770,000) $ (354,000)