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 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	20,000	70,000
Equipment	40,000	30,000
Client Contracts	0	100,000
In- Process Research and development	0	40,000
Note Payable	(60,000)	(65,000)

At December 31, 2018, the following financial information is available for consolidation:

	Pratt	Spider
cash	36,000	18,000
Receivable	116,000	52,000
Inventory	140,000	90,000
Investment in spider	495,000	0
Computer Software	210,000	20,000
Buildings (net)	595,000	130,000
Equipment(net)	308,000	40,000
Clients Contracts	0	0
Goodwill	0	0
Total Assets	1,900,000	350,000
Account Payable	(88,000)	(25,000)
Notes Payable	(510,000)	(60,000)
Common Stock	(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

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.

- Purchase price and account allocation Consideration transferred at fair value Book value Excess fair over book value Allocation of excess fair value to specific assets and liabilities -to Computer software -to Equipment -to Client contra -to In-process research and development -to Notes payable Goodwill