Pratt Company acquired all of Spider, Inc.s outstanding shares on December 31, 2018, for $484,900 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	$	46,600			$	94,350
Equipment		78,500				67,900
Client contracts		0				112,500
In-process research and development		0				29,000
Notes payable		(71,900	)			(78,900	)

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

Pratt

Spider

Cash

$

32,400

$

6,800

Receivables

120,500

32,000

Inventory

171,500

54,000

Investment in Spider

484,900

0

Computer software

230,500

46,600

Buildings (net)

595,000

171,500

Equipment (net)

315,000

78,500

Client contracts

0

0

Goodwill

0

0

Total assets

$

1,949,800

$

389,400

Accounts payable

$

(95,300

)

$

(41,000

)

Notes payable

(531,500

)

(71,900

)

Common stock

(380,000

)

(100,000

)

Additional paid-in capital

(170,000

)

(25,000

)

Retained earnings

(773,000

)

(151,500

)

Total liabilities and equities

$

(1,949,800

)

$

(389,400

)

Prepare Balance Sheet

Assets		Liabilities
Cash		Account Payable
Receivables		Notes Payable
Inventory		Common Stock
Computer Software		Additional paid-in capital
Buildings (net)		Retained Earnings
Equipment (net)
Client Contracts
R&D assets
Goodwill
Total Assets		Total Liabilites & Equities