Pratt Company acquired all of Spider, Inc.'s outstanding shares on December 31, 2015, 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 der the acquisition price, Pratt assessed Spider's fair and book value differences as follows: Book Fair Values Values Computer Software 20,000 70,000 Equipment 40,000 30,000 100,000 Client contracts 0 40,000 In-process research and development Notes payable 60.000 (i 65.000 At December 31, 2015, the following financial information is available for consolidation: Pratt Spider Cash 36,000 18,000 Receivables 116.000 52.000 140,000 Inventory 90.000 Investment in Spider 495,000 20,000 Computer Software 210,000 Buildings (net) 595,000 130.000 308,000 Equipment (net) 40,000 Client contracts Goodwi Total assets 1,900,000 350,000 (88,000) (25,000) Accounts payable Notes payable (510,000 60.000 Common Stock (380,000 (100,000) Additional paid-in capital (170,000 (25,000 Retained earnings (752,000 40.000 Total liabilities and equities $(1,900,000) $(350,000) Note: Parentheses indicate a credit balance