Pratt Company acquired all of Spider, Inc.s outstanding shares on December 31, 2018, for $518,250 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 $ 50,000 $ 93,000 Equipment 44,000 28,100 Client contracts 0 116,800 In-process research and development 0 31,000 Notes payable (92,200) (97,600) At December 31, 2018, the following post-acquisition financial information is available for consolidation: Pratt Spider Cash $ 6,850 $ 29,700 Receivables 114,500 79,500 Inventory 129,000 93,000 Investment in Spider 518,250 0 Computer software 252,000 50,000 Buildings (net) 556,000 133,500 Equipment (net) 354,000 44,000 Client contracts 0 0 Goodwill 0 0 Total assets $ 1,930,600 $ 429,700 Accounts payable $ (92,100) $ (33,000) Notes payable (510,500) (92,200) Common stock (380,000) (100,000) Additional paid-in capital (170,000) (25,000) Retained earnings (778,000) (179,500) Total liabilities and equities$(1,930,600) $(429,700)

Prepare a five column workpaper that shows the consolidated balances for each account for Pratt and Spider as of December 31, 2018. As a preliminary step, you may wish to prepare an allocation of fair value schedule. You should have two consolidation entriesS and A You should begin your response using a blank Excel worksheet. You should format the worksheet properly and use formulas to the extent they are appropriate. Label all columns. Save your worksheet with the following naming format