29. Prat Company acquired all of Spider, Inc.'s outstanding shares on December 31, 2018, for $495,000 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider's book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider's fair and book value differences as follows: Book Values Fair Values $ 70,000 30,000 100,000 40,000 (65,000) $ 20,000 40,000 Equipment .. In-process research and development Notes payable (60,000) At December 31, 2018, the following financial information is available for consolidation: Spider Pratt $ 18,000 52,000 90,000 0- 20,000 $36,000 Cash . Receivables . .. Inventory. Inve stment in Spider. Computer software.. 116,000 140,000 495,000 2 10,000 Buildings (net) 595,000 308,000 130,000 40,000 Client contracts . Total assets. $1,900,000 $350,000 $ (88,000) (510,000) (380,000) (170,000) (752.000) $(1.900,000) $ (25,000) (60,000) (100,000) 25,000) (140,000) $(350,000) Notes payable. Common stock.. Additional paid-in capital.. Retained earnings