2-19 - 19. (Prepare balance sheet for a statutory merger...

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19. (Prepare balance sheet for a statutory merger using the acquisition method. Also, use worksheet to derive consolidated totals.) a. In accounting for the combination of NewTune and On-the-Go, the fair value of the acquisition is allocated to each identifiable asset and liability acquired with any remaining excess attributed to goodwill. Fair value of consideration transferred (shares issued) $750,000 Fair value of net assets acquired: Cash $29,000 Receivables 63,000 Trademarks 225,000 Record music catalog 180,000 In-process R&D 200,000 Equipment 105,000 Accounts payable (34,000) Notes payable (45,000 ) 723,000 Goodwill $27,000 Entry by NewTune to record combination with On-the-Go: Cash 29,000 Receivables 63,000 Trademarks 225,000 Record Music Catalog 180,000 Capitalized R&D 200,000 Equipment 105,000 Goodwill 27,000 Accounts Payable 34,000 Notes Payable 45,000 Common Stock (NewTune par value) 60,000 Additional Paid-in Capital 690,000 (To record merger with On-the-Go at fair value) Additional Paid-in Capital 25,000 Cash 25,000 (Stock issue costs incurred)
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2-19 - 19. (Prepare balance sheet for a statutory merger...

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