On January 1, NewTune Company exchanges 17,360 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each of NewTunes 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-Gos fair value. NewTune also paid $44,650 in stock registration and issuance costs in connection with the merger. Several of On-the-Gos accounts fair values differ from their book values on this date: Book Values Fair Values Receivables $ 44,250 $ 41,300 Trademarks 117,250 277,750 Record music catalog 66,000 186,750 In-process research and development 0 261,000 Notes payable (54,750 ) (48,350 ) Precombination book values for the two companies are as follows: NewTune On-the-Go Cash $ 62,000 $ 50,250 Receivables 125,000 44,250 Trademarks 441,000 117,250 Record music catalog 873,000 66,000 Equipment (net) 344,000 108,000 Totals $ 1,845,000 $ 385,750 Accounts payable $ (150,000 ) $ (43,500 ) Notes payable (378,000 ) (54,750 ) Common stock (400,000 ) (50,000 ) Additional paid-in capital (30,000 ) (30,000 ) Retained earnings (887,000 ) (207,500 ) Totals $ (1,845,000 ) $ (117,250 ) Assume that this combination is a statutory merger so that On-the-Gos 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. 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.