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Pratt Company acquired all of Spider, Inc.'s outstanding shares on December 31, 2018, for $550,200 cash. Pratt will operate Spider as a wholly owned subsidiary

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Pratt Company acquired all of Spider, Inc.'s outstanding shares on December 31, 2018, for $550,200 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider's 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 Spider's fair and book value differences as follows: Book Values $ 26,000 60,000 Computer software Equipment client contracts In process research and development Notes payable Fair Values $ 90,500 43,300 139,000 26,000 (113, 100) (103,500) At December 31, 2018, the following financial information is available for consolidation: $ Spider 45,000 89,000 1ee,eee Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) client contracts Goodwill Total assets Accounts payable Pratt 9,400 113,500 144,000 550, 200 242,500 601,250 279,000 26,000 150,500 60,000 $ 1,939,850 $ (95,100) 5 468,500 (55,000) At December 31, 2018, the following financial information is available for consolidation: $ Pratt 9,400 113,500 144,000 550,200 242,500 601,250 279,000 Spider 43,000 89,000 100,000 26,000 150,500 60,000 Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) client contracts Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 1,939,850 (95,100) (519,750) (380,000) (170,000) (775,000 $(1,939,850) $ 468,500 $ (55,000) (103,500) (100,000) (25,000) 1 85,000) $ (468,500) Retained earnings Total liabilities and equities (775,000 $(1,939,850) (185,000). $ (468,500) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018. PRATT COMPANY AND SUBSIDIARY Consolidated Balance Sheet December 31, 2018 Liabilities and Stockisolders' Equity Assets Total assets Total liabilities and equities

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