Pratt Company acquired all of Spider, Inc.'s outstanding shares on December 31, 2018, for $503,750 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 S 49,800 112,550 Computer software Equipment Client contracts In-process research and development Notes payable 44,700 116,200 21,000 (78,400) 63,500 (69,000) At December 31, 2018, the following financial information is available for consolidation Pratt Spider Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Goodwil1 $ 16,100 $ 13,900 40,500 100,500 163,500 164,000 503,750 259,000 506,500 398,000 49,800 149,800 63,500 Total assets $ 2,010,850 418,000 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings $ (90,600) (53,000) (69,000) ,000) (100,000) (25,000) (849,000) (171,000) $ (2,010,850) (418,000) (521,250) (170,000) Total liabilities and equities Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018. PRATT COMPANY AND SUBSIDIARY Consolidated Balance Sheet December 31, 2018 Assets Liabilities and Stockholders' Equity Cash Receivables Inventory Computer software Buildings (net) Equipment (net) Client contracts Accounts pavable otes payable Common stock Research and development asset Goodwill Additional paid-in capital etained earnings 0 Total liabilities and equities Total assets