29. Pratt 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 $ 20,000 $ 70,000 Equipment Client contracts.. In-process research and development 40,000 30,000 100,000 40,000 (65,000) (60,000) At December 31, 2018, the following financial information is available for consolidation: Pratt Spider Cash $36,000 116,000 $ 18,000 Receivables 52,000 Inventory 140,000 90,000 Investment in Spider.... 495,000 210,000 0- 20,000 (continued) Buildings (net. CT 595,000 308,000 130,000 ject 40.000 Client contracts Goodwill.. Total assets.... . $1,900,000 $350,000 Accounts payable.. Notes payable.... Common stock Additional paid-in capital $ (25,000) (60,000) (100,000) (25,000) 140 $ (88,000) (510,000) (380,000 (170,000) 752,00 emp Total liabilities and equities... $1900,000 $350,000