Pratt Company acquired all of Spider, Inc.s outstanding shares on December 31, 2018, for $527,650 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 $ 34,000 $ 87,250 Equipment 86,400 70,900 Client contracts 0 111,800 In-process research and development 0 53,750 Notes payable (94,500 ) (104,250 ) At December 31, 2018, the following financial information is available for consolidation: Pratt Spider Cash $ 16,100 $ 37,700 Receivables 118,000 57,000 Inventory 154,000 76,000 Investment in Spider 527,650 0 Computer software 210,500 34,000 Buildings (net) 596,500 150,000 Equipment (net) 340,000 86,400 Client contracts 0 0 Goodwill 0 0 Total assets $ 1,962,750 $ 441,100 Accounts payable $ (93,000 ) $ (69,000 ) Notes payable (530,250 ) (94,500 ) Common stock (380,000 ) (100,000 ) Additional paid-in capital (170,000 ) (25,000 ) Retained earnings (789,500 ) (152,600 ) Total liabilities and equities $ (1,962,750 ) $ (441,100 ) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.