Pratt Company acquired all of Spider, Inc.s outstanding shares on December 31, 2015, for $482,500 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	$	38,500	$	89,500
Equipment		70,500		53,100
Client contracts		0		108,500
In-process research and development		0		32,750
Notes payable		(73,000)		(78,350)

At December 31, 2015, the following financial information is available for consolidation:

	Pratt			Spider
Cash	$	12,700		$	28,500
Receivables		139,500			53,000
Inventory		156,000			75,000
Investment in Spider		482,500			0
Computer software		244,500			38,500
Buildings (net)		568,750			154,000
Equipment (net)		373,000			70,500
Client contracts		0			0
Goodwill		0			0
Total assets	$	1,976,950		$	419,500
Accounts payable	$	(94,700)		$	(71,500)
Notes payable		(522,250)			(73,000)
Common stock		(380,000)			(100,000)
Additional paid-in capital		(170,000)			(25,000)
Retained earnings		(810,000)			(150,000)
Total liabilities and equities	$	(1,976,950)		$	(419,500)

Note: Parentheses indicate a credit balance.

1) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2015.