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  3. on january 1, newtune company exchanges 18,235 sha

On January 1, NewTune Company exchanges 18,235 shares of its common stock for all of...

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Accounting

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On January 1, NewTune Company exchanges 18,235 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 $24,100 in stock registration and issuance costs in connection with thee merge Several of On-the-Go's accounts' fair values differ from their book values on this date Book Values Fair Values Receivables Trademarks Record music catalog In-process research and development Notes payable $ 42,750 38,400 308,500 248,250 218,250 (52,500) (46,100) 118,750 80,250 Precombination book values for the two companies are as follows On-the-Go $ 66,500 $ 31,750 42,750 118,750 80,250 117,000 $ 1,867,000 $ 390,500 NewTune Cash Receivables Trademarks Record music catalog Equipment (net) Totals 153,500 463,000 851,000 333,000 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Totals $ (151,000) $ (37,000) (406,000) (52,500) (400,000) (50,000) (30,000) (30,000) (221,000) $(1,867,000) $ (118,750) (880,000)

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