P 2-29 in textbook. 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: Computer software Equipment Client contracts In-process research and development Notes payable Book Values $ 20,000 40,000 (60,000) At December 31, 2018, the following financial information is available for consolidation: Fair Values $ 70,000 30,000 100,000 40,000 (65,000) Pratt Spider Cash Receivables Inventory Investment in Spider Computer software Buildings (net) $36,000 $18,000 116,000 52,000 140,000 90,000 495,000 -0- 210,000 20,000 595,000 130,000 Equipment (net) Client contracts In-Process R&D Goodwill Total Assets Accounts payable Notes payable Common Stock 308,000 40,000 -0- -0- -0- -0- -0- -0- 1,900,000 350,000 (88,000) (25,000) (510,000) (60,000) (380,000) (100,000) Additional paid-in capital (170,000) (25,000) Retained earnings (752,000) (140,000) Total liabilities and equities (1,900,000) (350,000)