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On January $1,$ NewTune Company exchanges $15,000$ 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 $$25\mathrm{.}000$ in stock registration and issuance costs in connection with the merger. Several of On$-$the$-$Go's accounts' fair values differ from their book values on this date $($credit balances in parentheses$)$:Book ValuesFair ValuesReceivables$ $65,000$$ $63,000$Trademarks$95,000225,000$Record music catalog$60,000180,000$In$-$process research and development$-0-200,000$Notes payable$(50,000)(45,000)$Precombination book values for the two companies are as follows:NewTuneOn$-$the$-$GoCash$ $60,000$$ $29,000$Receivables$150,00065,000$Trademarks$400,00095,000$Record music catalog$840,00060,000$Equipment $($net$)320,000105,000$Totals$ $1,770,000$$ $354,000$Accounts payable$ $(110,000)$$ $(34,000)$Notes payable$(370,000)(50,000)$Common stock$(400,000)(50,000)$Additional paid$-$in capital$(30,000)(30,000)$Retained earnings$(860,000)(190,000)$Totals$$(1,770,000)$$$(354,000)$a$.$ 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. b$.$ Assume that no dissolution takes place in connection with this combination. Rather, both companies retain their separate legal identities. Prepare a Balance sheet to consolidate the two companies as of the combination date.

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