On January 1, 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 $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 $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 Receivables Trademarks Record music catalog In-process research and development Notes payable Fair Values 44,200 250,500 201,750 225,000 $ 50,750 104,250 75,000 (68,250) (62,750) Precombination book values for the two companies are as follows NewTune On-the-Go Cash Receivables Trademarks Record music cataloq Equipment (net) Totals $63,000 $ 38,500 50,750 104,250 75,000 389,000133,000 $ 1,878,000 401,500 126,000 459,000 841,000 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Totals $ 129,000) $ (52,750) (68,250) (400,000) (50,000) (30,000) (370,000) (30,000) 949,000 200,500 $ (1,878,000) $ (104,250) a. Assume that this combination is a statutory merger so that On-the-Go's accounts will be transferred to the records of NewTune. On- the-Go will be dissolved and will no longer exist as a legal entity. Prepare a postcombination balance sheet for NewTune as of the acquisition date b. Assume that no dissolution takes place in connection with this combination. Rather, both companies retain their separate legal identities. Prepare a worksheet to consolidate the two companies as of the combination date