Pratt Company acquired all of Spider, Inc.s outstanding shares on December 31, 2018, for $461,700 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spiders 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 Spiders fair and book value differences as follows: Book Values Fair Values Computer software $ 33,000 $ 74,000 Equipment 82,000 62,600 Client contracts 0 118,000 In-process research and development 0 24,000 Notes payable (71,500 ) (78,400 ) At December 31, 2018, the following financial information is available for consolidation: Pratt Spider Cash $ 23,750 $ 15,000 Receivables 136,000 47,000 Inventory 189,000 60,500 Investment in Spider 461,700 0 Computer software 233,500 33,000 Buildings (net) 605,750 142,500 Equipment (net) 347,000 82,000 Client contracts 0 0 Goodwill 0 0 Total assets $ 1,996,700 $ 380,000 Accounts payable $ (88,200 ) $ (38,500 ) Notes payable (529,500 ) (71,500 ) Common stock (380,000 ) (100,000 ) Additional paid-in capital (170,000 ) (25,000 ) Retained earnings (829,000 ) (145,000 ) Total liabilities and equities $ (1,996,700 ) $ (380,000 ) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.