On January 1, NewTune Company exchanges 18,100 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 $33,500 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): Receivables Trademarks Record music catalog In-process research and development Notes payable Book Values Fair Values $ 68,750 $ 68,750 0 66,000 113,250 282,000 227,000 271,500 (72,250) (65,700) Precombination book values for the two companies are as follows: Cash Receivables Trademarks Record music catalog Equipment (net) Total Assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities NewTune On-the-Go $ 70,750 $ 30,250 40,500 68,750 486,000 119,250 853,000 68,750 413,000 110,000 $ 1,853,000 $ 401,250 5 (177,000) $ (56,000) (379,000) (72,250) (400,000) (30,000) (867,000) (50,000) (30,000) (193,000) $(1,853,000) 5 (401,250) o. 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