On January 1, NewTune Company exchanges 17,907 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 $35,800 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 $ 51,750 $ 48,400 Trademarks 114,750 282,750 Record music catalog 67,500 227,250 In-process research and development 0 221,250 Notes payable (70,750 ) (63,050 ) Precombination book values for the two companies are as follows: NewTune On-the-Go Cash $ 69,250 $ 41,250 Receivables 117,750 51,750 Trademarks 452,000 114,750 Record music catalog 913,000 67,500 Equipment (net) 390,000 150,000 Totals $ 1,942,000 $ 425,250 Accounts payable $ (182,000 ) $ (48,500 ) Notes payable (409,000 ) (70,750 ) Common stock (400,000 ) (50,000 ) Additional paid-in capital (30,000 ) (30,000 ) Retained earnings (921,000 ) (226,000 ) Totals $ (1,942,000 ) $ (114,750 ) 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.