Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $531,550 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	$	57,700		$	116,950
Equipment		40,500			25,500
Client contracts		0			109,000
In-process research and development		0			39,000
Notes payable		(95,500	)		(105,200	)

At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses):

	Pratt				Spider
Cash	$	15,000			$	38,300
Receivables		122,000				63,500
Inventory		160,000				116,000
Investment in Spider		531,550				0
Computer software		217,000				57,700
Buildings (net)		611,250				146,000
Equipment (net)		321,000				40,500
Client contracts		0				0
Goodwill		0				0
Total assets	$	1,977,800			$	462,000
Accounts payable	$	(92,300	)		$	(57,500	)
Notes payable		(523,500	)			(95,500	)
Common stock		(380,000	)			(100,000	)
Additional paid-in capital		(170,000	)			(25,000	)
Retained earnings		(812,000	)			(184,000	)
Total liabilities and equities	$	(1,977,800	)		$	(462,000	)

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021.

Credit Consolidated PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Pratt Spider Debit S 15,000 $ 38,300 122,000 63,500 160,000 116,000 531,550 217,000 57,700 611,250 146,000 321,000 40,500 Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Research and development asset Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 0 S 1,977,800 $ S (92,300) $ (523,500) (380,000) (170,000) (812,000) S (1,977,800) S 462,000 (57,500) (95,500) (100,000) (25,000) (184,000) (462,000) S 0 S 0 S 0